Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 12, 2016 | Jun. 30, 2015 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | BMRN | ||
Entity Registrant Name | BIOMARIN PHARMACEUTICAL INC | ||
Entity Central Index Key | 1,048,477 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 161,590,680 | ||
Entity Public Float | $ 15.2 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 397,040 | $ 875,486 |
Short-term investments | 195,579 | 69,706 |
Accounts receivable, net (allowance for doubtful accounts: $93 and $490, at December 31, 2015 and 2014, respectively) | 164,959 | 144,472 |
Inventory | 271,683 | 199,452 |
Other current assets | 60,378 | 108,524 |
Total current assets | 1,089,639 | 1,397,640 |
Noncurrent assets: | ||
Long-term investments | 425,652 | 97,856 |
Property, plant and equipment, net | 704,207 | 523,516 |
Intangible assets, net | 683,996 | 156,578 |
Goodwill | 197,039 | 54,258 |
Deferred tax assets | 220,191 | 190,974 |
Other assets | 408,644 | 54,557 |
Total assets | 3,729,368 | 2,475,379 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 392,511 | 231,844 |
Short-term contingent acquisition consideration payable | 52,946 | 3,895 |
Total current liabilities | 445,457 | 235,739 |
Noncurrent liabilities: | ||
Long-term convertible debt, net | 662,286 | 642,902 |
Long-term contingent acquisition consideration payable | 32,663 | 38,767 |
Long-term deferred tax liabilities | 143,527 | |
Other long-term liabilities | 44,588 | 30,077 |
Total liabilities | 1,328,521 | 947,485 |
Stockholders’ equity: | ||
Common stock, $0.001 par value: 250,000,000 shares authorized at December 31, 2015 and 2014: 161,526,044 and 149,093,647 shares issued and outstanding at December 31, 2015 and 2014, respectively. | 162 | 149 |
Additional paid-in capital | 3,414,837 | 2,359,744 |
Company common stock held by Nonqualified Deferred Compensation Plan | (13,616) | (9,695) |
Accumulated other comprehensive income | 21,033 | 27,466 |
Accumulated deficit | (1,021,569) | (849,770) |
Total stockholders’ equity | 2,400,847 | 1,527,894 |
Total liabilities and stockholders’ equity | $ 3,729,368 | $ 2,475,379 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Statement Of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 93 | $ 490 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 250,000,000 | 250,000,000 |
Common stock, shares issued | 161,526,044 | 149,093,647 |
Common stock, shares outstanding | 161,526,044 | 149,093,647 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
REVENUES: | |||
Net product revenues | $ 884,522,000 | $ 738,416,000 | $ 538,360,000 |
Collaborative agreement revenues | 1,018,000 | 1,592,000 | 3,918,000 |
Royalty, license and other revenues | 4,355,000 | 9,276,000 | 6,207,000 |
Total revenues | 889,895,000 | 749,284,000 | 548,485,000 |
OPERATING EXPENSES: | |||
Cost of sales (excludes amortization of intangible assets) | 152,008,000 | 122,267,000 | 88,391,000 |
Research and development | 634,806,000 | 461,543,000 | 354,780,000 |
Selling, general and administrative | 402,271,000 | 302,156,000 | 235,356,000 |
Intangible asset amortization and contingent consideration | (17,690,000) | 23,709,000 | 25,026,000 |
Impairment of intangible asset | 198,700,000 | 939,000 | |
Gain on sale of intangible asset | (369,498,000) | (67,500,000) | |
Total operating expenses | 1,000,597,000 | 842,175,000 | 704,492,000 |
LOSS FROM OPERATIONS | (110,702,000) | (92,891,000) | (156,007,000) |
Equity in the loss of BioMarin/Genzyme LLC | (817,000) | (877,000) | (1,149,000) |
Interest income | 4,501,000 | 5,937,000 | 3,083,000 |
Interest expense | (38,244,000) | (36,642,000) | (10,447,000) |
Debt conversion expense | (163,000) | (674,000) | (12,965,000) |
Other income (expense) | (9,299,000) | 279,000 | 982,000 |
LOSS BEFORE INCOME TAXES | (154,724,000) | (124,868,000) | (176,503,000) |
Provision for (benefit from) income taxes | 17,075,000 | 9,101,000 | (150,000) |
NET LOSS | $ (171,799,000) | $ (133,969,000) | $ (176,353,000) |
NET LOSS PER SHARE, BASIC AND DILUTED | $ (1.07) | $ (0.92) | $ (1.28) |
Weighted average common shares outstanding, basic and diluted | 160,025 | 146,349 | 137,755 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
NET LOSS | $ (171,799) | $ (133,969) | $ (176,353) |
OTHER COMPREHENSIVE INCOME (LOSS): | |||
Net foreign currency gain (loss) | (59) | (75) | 361 |
Unrealized holding gain (loss) arising during the period, net of tax impact of $1,581, $(2,931) and $(3,535) for the years ended December 31, 2015, 2014 and 2013, respectively. | (2,878) | 5,088 | 6,275 |
Less reclassifications to net loss, net of tax impact of $(681), $0 and $0 for the years ended December 31, 2015, 2014 and 2013, respectively. | 1,192 | 1 | |
Net change in unrealized holding gains, net of tax | (4,070) | 5,088 | 6,274 |
Unrealized holding gain (loss) arising during the period, net of tax impact of $0, $(1,214) and $789 for the years ended December 31, 2015, 2014 and 2013, respectively. | 17,300 | 18,078 | (1,366) |
Less reclassifications to net loss, net of tax impact of $0, $(365) and $(28) for the years ended December 31, 2015, 2014 and 2013, respectively. | 19,604 | 643 | 49 |
Net change in unrealized holding gains (loss), net of tax | (2,304) | 17,435 | (1,415) |
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX | (6,433) | 22,448 | 5,220 |
COMPREHENSIVE LOSS | $ (178,232) | $ (111,521) | $ (171,133) |
CONSOLIDATED STATEMENTS OF COM6
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Unrealized holding gain arising during the period, tax | $ 1,581 | $ (2,931) | $ (3,535) |
Reclassifications to net loss, tax | (681) | 0 | 0 |
Unrealized holding gain (loss) arising during the period, tax | 0 | (1,214) | 789 |
Reclassifications to net loss, tax | $ 0 | $ (365) | $ (28) |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Company Common Stock Held By Nonqualified Deferred Compensation Plan | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit |
Beginning Balance at Dec. 31, 2012 | $ 1,015,763 | $ 126 | $ 1,561,890 | $ (6,603) | $ (202) | $ (539,448) |
Beginning Balance (in shares) at Dec. 31, 2012 | 125,809,000 | |||||
Net loss | (176,353) | (176,353) | ||||
Other comprehensive income (loss) | 5,220 | 5,220 | ||||
Purchase of capped call share options, net of tax | (19,065) | (19,065) | ||||
Issuance of convertible debt, net of tax and offering costs | 99,879 | 99,879 | ||||
Issuance of common stock under the 2006 Employee Stock Purchase Plan (the ESPP) (in shares) | 254,000 | |||||
Issuance of common stock under the 2006 Employee Stock Purchase Plan (the ESPP) | 6,839 | 6,839 | ||||
Exercise of common stock options (in shares) | 2,885,000 | |||||
Exercise of common stock options | 65,740 | $ 4 | 65,736 | |||
Excess tax benefit from stock option exercises | 733 | 733 | ||||
Conversion of convertible notes, net (in shares) | 14,313,000 | |||||
Conversion of convertible notes, net | 283,319 | $ 14 | 283,305 | |||
Restricted stock vested during the period, net (in shares) | 203,000 | |||||
Restricted stock vested during the period, net | (6,397) | (6,397) | ||||
Common stock held by Nonqualified Deferred Compensation Plan | (818) | (818) | ||||
Stock-based compensation | 66,181 | 66,181 | ||||
Ending Balance at Dec. 31, 2013 | 1,341,041 | $ 144 | 2,059,101 | (7,421) | 5,018 | (715,801) |
Ending Balance (in shares) at Dec. 31, 2013 | 143,464,000 | |||||
Net loss | (133,969) | (133,969) | ||||
Other comprehensive income (loss) | 22,448 | 22,448 | ||||
Issuance of common stock, net of offering costs (in shares) | 1,500,000 | |||||
Issuance of convertible debt, net of tax and offering costs | 117,464 | $ 1 | 117,463 | |||
Issuance of common stock under the 2006 Employee Stock Purchase Plan (the ESPP) (in shares) | 258,000 | |||||
Issuance of common stock under the 2006 Employee Stock Purchase Plan (the ESPP) | 8,714 | 8,714 | ||||
Exercise of common stock options (in shares) | 2,564,000 | |||||
Exercise of common stock options | 71,190 | $ 3 | 71,187 | |||
Excess tax benefit from stock option exercises | 1,491 | 1,491 | ||||
Conversion of convertible notes, net (in shares) | 1,055,000 | |||||
Conversion of convertible notes, net | 21,324 | $ 1 | 21,323 | |||
Restricted stock vested during the period, net (in shares) | 253,000 | |||||
Restricted stock vested during the period, net | (7,768) | (7,768) | ||||
Common stock held by Nonqualified Deferred Compensation Plan | (2,274) | (2,274) | ||||
Stock-based compensation | 88,233 | 88,233 | ||||
Ending Balance at Dec. 31, 2014 | 1,527,894 | $ 149 | 2,359,744 | (9,695) | 27,466 | (849,770) |
Ending Balance (in shares) at Dec. 31, 2014 | 149,094,000 | |||||
Net loss | (171,799) | (171,799) | ||||
Other comprehensive income (loss) | (6,433) | (6,433) | ||||
Issuance of common stock, net of offering costs (in shares) | 9,775,000 | |||||
Issuance of convertible debt, net of tax and offering costs | 888,257 | $ 10 | 888,247 | |||
Issuance of common stock under the 2006 Employee Stock Purchase Plan (the ESPP) (in shares) | 185,000 | |||||
Issuance of common stock under the 2006 Employee Stock Purchase Plan (the ESPP) | $ 9,957 | 9,957 | ||||
Exercise of common stock options (in shares) | 1,723,345 | 1,723,000 | ||||
Exercise of common stock options | $ 53,088 | $ 2 | 53,086 | |||
Excess tax benefit from stock option exercises | 2,190 | 2,190 | ||||
Conversion of convertible notes, net (in shares) | 449,000 | |||||
Conversion of convertible notes, net | 9,112 | $ 1 | 9,111 | |||
Restricted stock vested during the period, net (in shares) | 300,000 | |||||
Restricted stock vested during the period, net | (22,989) | (22,989) | ||||
Common stock held by Nonqualified Deferred Compensation Plan | (3,921) | (3,921) | ||||
Stock-based compensation | 115,491 | 115,491 | ||||
Ending Balance at Dec. 31, 2015 | $ 2,400,847 | $ 162 | $ 3,414,837 | $ (13,616) | $ 21,033 | $ (1,021,569) |
Ending Balance (in shares) at Dec. 31, 2015 | 161,526,000 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net loss | $ (171,799) | $ (133,969) | $ (176,353) |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Depreciation and amortization expense | 47,187 | 45,871 | 36,014 |
Non-cash interest expense | 28,493 | 27,225 | 5,875 |
Accretion of discount on investments | 2,177 | 7,211 | 5,899 |
Stock-based compensation expense | 111,525 | 86,410 | 64,376 |
Gain on sale of intangible asset | (369,498) | (67,500) | |
Gain on termination of leases | (10,092) | ||
Gain on sale of equity investment | (3,022) | ||
Impairment of assets | 211,502 | 939 | |
Deferred income taxes | (76,827) | (25,617) | (8,905) |
Excess tax benefit from stock option exercises | (2,190) | (1,491) | (733) |
Unrealized foreign exchange gain on forward contracts | (19,575) | (832) | (658) |
Non-cash changes in the fair value of contingent acquisition consideration payable | (28,457) | 11,567 | 10,197 |
Debt conversion expense | 163 | 674 | 12,965 |
Other | 2,300 | 4,514 | 1,149 |
Changes in operating assets and liabilities: | |||
Accounts receivable, net | (16,367) | (25,951) | (8,740) |
Inventory | (50,989) | (22,339) | (21,102) |
Other current assets | 25,800 | (2,211) | (12,073) |
Other assets | (3,157) | (6,516) | 3,952 |
Accounts payable and accrued liabilities | 90,298 | 38,040 | 20,304 |
Other long-term liabilities | 747 | 3,093 | 9,559 |
Net cash used in operating activities | (221,689) | (71,913) | (57,335) |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Purchases of property, plant and equipment | (227,653) | (117,062) | (65,193) |
Funds held in escrow for the purchase of real property | (116,500) | ||
Deposit on purchase of PKU rights | (371,756) | ||
Maturities and sales of investments | 424,713 | 808,313 | 288,643 |
Purchase of available-for-sale investments | (873,184) | (507,036) | (395,042) |
Proceeds from sale of intangible asset | 410,000 | 67,500 | |
Business acquisitions, net of cash acquired | (538,392) | (9,875) | |
Investment in convertible promissory note | (3,326) | (52,288) | |
Other | (3,100) | (885) | |
Net cash provided by (used in) investing activities | (1,179,598) | 196,327 | (298,852) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Proceeds from exercises of stock options and the ESPP | 63,045 | 79,904 | 72,579 |
Taxes paid related to net share settlement of equity awards | (22,989) | (7,768) | (6,397) |
Proceeds from convertible senior note offering, net | 726,202 | ||
Purchase of capped call share options | (29,813) | ||
Proceeds from public offering of common stock, net | 888,257 | 117,464 | |
Excess tax benefit from stock option exercises | 2,190 | 1,491 | 733 |
Payments for debt conversion | (163) | (674) | (12,965) |
Payment of contingent acquisition consideration payable | (4,691) | (3,061) | |
Other | (2,427) | (37) | (607) |
Net cash provided by financing activities | 927,913 | 185,689 | 746,671 |
Effect of exchange rate changes on cash | (5,072) | (3,398) | (2,230) |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (478,446) | 306,705 | 388,254 |
Cash and cash equivalents: | |||
Beginning of period | 875,486 | 568,781 | 180,527 |
End of period | 397,040 | 875,486 | 568,781 |
SUPPLEMENTAL CASH FLOW DISCLOSURES: | |||
Cash paid for interest, net of interest capitalized into fixed assets | 9,307 | 9,324 | 2,159 |
Cash paid for income taxes | 16,084 | 34,986 | 14,897 |
Stock-based compensation capitalized into inventory | 11,140 | 8,166 | 6,121 |
Depreciation capitalized into inventory | 14,627 | 10,952 | 11,016 |
SUPPLEMENTAL CASH FLOW DISCLOSURES FROM INVESTING AND FINANCING ACTIVITIES: | |||
Increase (decrease) in accounts payable and accrued liabilities related to fixed assets | (4,651) | 16,766 | 5,001 |
Conversion of convertible debt, net | $ 9,112 | $ 21,324 | $ 283,319 |
NATURE OF OPERATIONS AND BUSINE
NATURE OF OPERATIONS AND BUSINESS RISKS | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
NATURE OF OPERATIONS AND BUSINESS RISKS | (1) NATURE OF OPERATIONS AND BUSINESS RISKS BioMarin Pharmaceutical Inc. (the Company or BioMarin), a Delaware corporation, develops and commercializes innovative biopharmaceuticals for serious diseases and medical conditions. BioMarin selects product candidates for diseases and conditions that represent a significant unmet medical need, have well-understood biology and provide an opportunity to be first-to-market or offer a significant benefit over existing products. The Company’s product portfolio consists of five approved products and multiple clinical and pre-clinical product candidates. The Company’s approved products are Vimizim (elosulfase alfa), Naglazyme (galsulfase), Kuvan (sapropterin dihydrochloride), Aldurazyme (laronidase) and Firdapse (amifampridine phosphate). The Company expects to continue to finance future cash needs that exceed its operating activities primarily through its current cash, cash equivalents, short-term and long-term investments, and to the extent necessary, through proceeds from equity or debt financings, loans and collaborative agreements with corporate partners. If the Company elects to increase its spending on development programs significantly above current long-term plans or enters into potential licenses and other acquisitions of complementary technologies, products or companies, the Company may need additional capital. The Company is subject to a number of risks, including: the financial performance of Vimizim, Naglazyme, Kuvan, Aldurazyme and Firdapse; the potential need for additional financings; the Company’s ability to successfully commercialize its approved product candidates; the uncertainty of the Company’s research and development (R&D) efforts resulting in future successful commercial products; the Company’s ability to successfully obtain regulatory approval for new products; significant competition from larger organizations; reliance on the proprietary technology of others; dependence on key personnel; uncertain patent protection; dependence on corporate partners and collaborators; and possible restrictions on reimbursement from governmental agencies and healthcare organizations, as well as other changes in the health care industry. |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION | (2) BASIS OF PRESENTATION Basis of Presentation These Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States (U.S. GAAP) and include the accounts of BioMarin and its wholly owned subsidiaries. All significant intercompany transactions have been eliminated. Management performed an evaluation of the Company’s activities through the date of filing of this Annual Report on Form 10-K, and has concluded that there are no subsequent events except for the transactions disclosed in Note 25 to these Consolidated Financial Statements. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make judgments, estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the dates of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | (3) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Cash and Cash Equivalents The Company treats liquid investments with original maturities of three months or less when purchased as cash and cash equivalents. Investments The Company determines the appropriate classification of its investments in debt and equity securities at the time of purchase and reevaluates such designations at each balance sheet date. All of the Company’s securities are classified as available-for-sale and reported in short-term investments, other assets or long-term investments. Available-for-sale investments are recorded at fair market value, with unrealized gains or losses included in Accumulated Other Comprehensive Income on the Company’s Consolidated Balance Sheets, exclusive of other-than-temporary impairment losses, if any. Investments consist of corporate securities, commercial paper, U.S. federal government agency securities and certificates of deposit. Inventory The Company values inventory at the lower of cost or net realizable value and determines the cost of inventory using the average-cost method. Inventories consist of currently marketed products and may contain certain products awaiting regulatory approval. In evaluating the recoverability of inventories produced in preparation for product launches, the Company considers the likelihood that revenue will be obtained from the future sale of the related inventory together with the status of the product within the regulatory approval process. The Company analyzes its inventory levels quarterly and writes down inventory that has become obsolete, or has a cost basis in excess of its expected net realizable value and inventory quantities in excess of expected requirements. Expired inventory is disposed of and the related costs are recognized as Cost of Sales in the Company’s Consolidated Statements of Operations. Inventories Produced in Preparation for Product Launches The Company capitalizes inventories produced in preparation for product launches based upon the probability of regulatory approval and earning future revenues. Typically, capitalization of such inventory begins when positive results have been obtained for the clinical trials that the Company believes are necessary to support regulatory approval, uncertainties regarding ultimate regulatory approval have been significantly reduced and the Company has determined it is probable that these capitalized costs will provide some future economic benefit in excess of capitalized costs. The material factors considered by the Company in evaluating these uncertainties include the receipt and analysis of positive pivotal clinical trial results for the underlying product candidate, results from meetings with the relevant regulatory authorities prior to the filing of regulatory applications, and the compilation of the regulatory application. The Company closely monitors the status of each respective product within the regulatory approval process, including all relevant communication with regulatory authorities. The Company also considers its historical experience with manufacturing and commercializing similar products and the relevant product candidate. If the Company is aware of any specific material risks or contingencies other than the normal regulatory review and approval process, or if there are any specific issues identified relating to safety, efficacy, manufacturing, marketing or labeling, the related inventory would generally not be capitalized. For inventories that are capitalized in preparation of product launch, anticipated future sales, expected approval date and shelf lives are evaluated in assessing realizability. The shelf life of a product is determined as part of the regulatory approval process; however, in evaluating whether to capitalize pre-launch inventory production costs, the Company considers the product stability data of all of the pre-approval production to date to determine whether there is adequate expected shelf life for the capitalized pre-launch production costs. In applying the lower of cost or net realizable value to pre-launch inventory, the Company estimates a range of likely commercial prices based on its comparable commercial products. Property, Plant and Equipment Property, plant and equipment are stated at cost net of accumulated depreciation. Depreciation is computed using the straight-line method over the related estimated useful lives as presented in the table below. Significant additions and improvements are capitalized, while repairs and maintenance are charged to expense as incurred. Property and equipment purchased for specific research and development (R&D) projects with no alternative uses are expensed as incurred. Leasehold improvements Shorter of life of asset or lease term Building and improvements 20 to 50 years Manufacturing and laboratory equipment 5 to 15 years Computer hardware and software 3 to 8 years Office furniture and equipment 5 years Vehicles 5 years Land improvements 10 years Land Not applicable Construction-in-progress Not applicable Certain of the Company’s operating lease agreements include scheduled rent escalations over the lease term, as well as tenant improvement allowances. Scheduled increases in rent expense are recognized on a straight-line basis over the lease term. The difference between rent expense and rent paid is recorded as deferred rent and included in other liabilities in the accompanying Consolidated Balance Sheets. The tenant improvement allowances and free rent periods are recognized as a reduction of rent expense over the lease term on a straight-line basis. Impairment of Long-Lived Assets The Company records goodwill in a business combination when the total consideration exceeds the fair value of the net tangible and identifiable intangible assets acquired. Goodwill and intangible assets with indefinite lives are not amortized but subject to an annual impairment analysis. Intangible assets with finite lives are amortized over their estimated useful lives on a straight-line basis. The Company performs its annual impairment review of goodwill and indefinite lived intangibles during the fourth quarter and whenever events or circumstances indicate that the carrying amount of an asset may not be recoverable. If it is determined that the full carrying amount of an asset is not recoverable, an impairment loss is recorded in the amount by which the carrying amount of the asset exceeds its fair value. The Company currently operates in one business segment, the biopharmaceutical development and commercialization segment. When reviewing goodwill for impairment, the Company assesses whether goodwill should be allocated to operating levels lower than its single operating segment for which discrete financial information is available and reviewed for decision making purposes. These lower levels are referred to as reporting units. As of December 31, 2015, the Company has only one reporting unit. The Company tests finite-lived intangible assets for impairment when facts or circumstances suggest that the carrying value of the asset may not be recoverable. If the carrying value exceeds the projected undiscounted pre-tax cash flows of the intangible asset, an impairment loss equal to the excess of the carrying value over the estimated fair value (discounted after-tax cash flows) is recognized. The recoverability of the carrying value of the Company’s buildings, leasehold improvements for its facilities and equipment depends on the successful execution of the Company’s business initiatives and its ability to earn sufficient returns on approved products and product candidates. The Company continually monitors events and changes in circumstances that could indicate carrying amounts of its fixed assets may not be recoverable. When such events or changes in circumstances occur, the Company assesses recoverability by determining whether the carrying value of such assets will be recovered through the undiscounted expected future cash flows. If the future undiscounted cash flows are less than the carrying amount of these assets, the Company recognizes an impairment loss based on the excess of the carrying amount over the fair value of the assets. Revenue Recognition The Company recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred, the price to the buyer is fixed or determinable and collection from the customer is reasonably assured. Net Product Revenues —The Company recognizes revenues from product sales when title and risk of loss have passed to the customer, which typically occurs upon delivery. Product sales transactions are evidenced by customer purchase orders, customer contracts, invoices and/or the related shipping documents. Upon recognition of revenue from product sales, provisions are made for government rebates such as Medicaid reimbursements, customer incentives such as cash discounts for prompt payment, distributor fees and expected returns of expired products, as appropriate. Amounts collected from customers and remitted to governmental authorities, which primarily consists of value-added taxes related to product sales in foreign jurisdictions, are presented on a net basis in the Company’s Consolidated Statements of Operations, in that taxes billed to customers are not included as a component of net product revenues. In the U.S., the Company’s commercial products are generally sold to specialty pharmacies or end-users, such as hospitals, which act as retailers. Through December 31, 2015, the Company also sold Kuvan to Ares Trading S.A. (Merck Serono) at a price near its manufacturing cost, and Merck Serono resold the product to end users outside the U.S., Canada and Japan. The royalty earned from Kuvan product sold by Merck Serono in the EU was included as a component of net product revenues in the period earned. Outside the U.S., the Company’s commercial products are sold to its authorized distributors or directly to government purchasers or hospitals, which act as the end-users. The Company receives a 39.5% to 50% royalty on worldwide net Aldurazyme sales by Genzyme depending on sales volume, which is included in Net Product Revenues in the Company’s Consolidated Statements of Operations. The Company recognizes a portion of this amount as product transfer revenue when product is released to Genzyme because all of the Company’s performance obligations are fulfilled at that point and title to, and risk of loss for, the product has transferred to Genzyme. The product transfer revenue represents the fixed amount per unit of Aldurazyme that Genzyme is required to pay the Company if the product is unsold by Genzyme. The amount of product transfer revenue will eventually be deducted from the calculated royalty earned when the product is sold by Genzyme. The Company records the Aldurazyme royalty revenue based on net sales information provided by Genzyme and records product transfer revenue based on the fulfillment of Genzyme purchase orders in accordance with the terms of the related agreements with Genzyme and when the title and risk of loss for the product is transferred to Genzyme. The Company records reserves for rebates payable under Medicaid and other government programs as a reduction of revenue at the time product revenues are recorded. The Company’s reserve calculations require estimates, including estimates of customer mix, to determine which sales will be subject to rebates and the amount of such rebates. The Company updates its estimates and assumptions each quarter and records any necessary adjustments to its reserves. The Company records fees paid to distributors as a reduction of revenue. The Company records allowances for product returns, if appropriate, as a reduction of revenue at the time product sales are recorded. Several factors are considered in determining whether an allowance for product returns is required, including market exclusivity of the products based on their orphan drug status, the patient population, the customers’ limited return rights and the Company’s experience with returns. Because of the pricing of the Company’s commercial products, the limited number of patients and the customers’ limited return rights, most customers and retailers carry a limited inventory. However, certain international customers, usually government entities, tend to purchase larger quantities of product less frequently. Although such buying patterns may result in revenue fluctuations from quarter to quarter, the Company has not experienced any increased product returns or risk of product returns. The Company relies on historical return rates to estimate returns. Genzyme’s contractual return rights for Aldurazyme are limited to defective product. Based on these factors and the fact that the Company has not experienced significant product returns to date, management has concluded that product returns will be minimal. In the future, if any of these factors and/or the history of product returns change, an allowance for product returns may be required. Collaborative Agreement Revenues —Collaborative agreement revenues include both license revenue and contract research revenue. Activities under collaborative agreements are evaluated to determine if they represent a multiple element revenue arrangement. The Company identifies the deliverables included within the agreement and evaluates which deliverables represent separate units of accounting. The Company accounts for those components as separate units of accounting if the following two criteria are met: · The delivered item or items have value to the customer on a stand-alone basis; and · If there is a general right of return relative to the delivered items, delivery or performance of the undelivered items is considered probable and within the Company’s control. Factors considered in this determination include, among other things, whether any other vendors sell the items separately and if the licensee could use the delivered item for its intended purpose without the receipt of the remaining deliverables. If multiple deliverables included in an arrangement are separable into different units of accounting, the Company allocates the arrangement consideration to those units of accounting. The amount of allocable arrangement consideration is limited to amounts that are fixed or determinable. Arrangement consideration is allocated at the inception of the arrangement to the identified units of accounting based on their relative estimated selling price. Revenue is recognized for each unit of accounting when the appropriate revenue recognition criteria are met. Nonrefundable up-front license fees where the Company has continuing involvement through R&D collaboration are initially deferred and recognized as collaborative agreement license revenue over the estimated period for which the Company continues to have a performance obligation. Future milestone payments that are contingent upon the achievement of a substantive milestone are recognized in their entirety in the period in which the milestone is achieved. A milestone is substantive if: · It can only be achieved based in whole or in part on either the Company’s performance or on the occurrence of a specific outcome resulting from the Company’s performance; · There is substantive uncertainty at the date an arrangement is entered into that the event will be achieved; and · It would result in additional payments being due to the entity. Royalty, License and Other Revenues —Royalty revenues includes royalties on net sales of products with which the Company has no direct involvement and is recognized based on data reported by licensees or sublicensees and rental income associated with the tenants in the SRCC, which is recognized on a straight-line basis over the term of the respective lease. Royalties are recognized as earned in accordance with the contract terms at the time the royalty amount is fixed or determinable based on information received from the sublicensees and at the time collectibility is reasonably assured. Due to the significant role the Company plays in the operations (primarily the manufacturing and regulatory activities) of Aldurazyme and Kuvan as well as the rights and responsibilities to deliver the products to Genzyme and Merck Serono, respectively, the Company elected not to classify these royalties earned as royalty, license and other revenues but instead to include them as a component of Net Product Revenues in the Company’s Consolidated Statements of Operations. Research and Development R&D expenses include expenses associated with contract research and development provided by third parties, most product manufacturing prior to regulatory approval, clinical and regulatory costs, and internal R&D costs. In instances where the Company enters into agreements with third parties for R&D activities, costs are expensed upon the earlier of when non-refundable amounts are due or as services are performed unless there is an alternative future use of the funds in other R&D projects. Amounts due under such arrangements may be either fixed fee or fee for service and may include upfront payments, monthly payments and payments upon the completion of milestones or receipt of deliverables. The Company accrues costs for clinical trial activities based upon the services received and estimates of related expenses incurred that have yet to be invoiced by the vendors that perform the activities. Convertible Debt Transactions The Company separately accounts for the liability and equity components of convertible debt instruments that can be settled in cash by allocating the proceeds from issuance between the liability component and the embedded conversion option, or equity component, in accordance with accounting for convertible debt instruments that may be settled in cash (including partial cash settlement) upon conversion. The value of the equity component is calculated by first measuring the fair value of the liability component, using the interest rate of a similar liability that does not have a conversion feature, as of the issuance date. The difference between the proceeds from the convertible debt issuance and the amount measured as the liability component is recorded as the equity component with a corresponding discount recorded on the debt. The Company recognizes the accretion of the resulting discount using the effective interest method as part of Interest Expense in its Consolidated Statements of Operations. Net Loss Per Common Share Basic net loss per share is calculated by dividing net loss by the weighted average shares of common stock outstanding during the period. Diluted net loss per share reflects the potential dilution that would occur if securities or other contracts to issue common stock were exercised or converted into common stock; however, potential common equivalent shares are excluded if their effect is anti-dilutive. The Company currently has no dilutive securities due to the net loss position and as such, basic and diluted net loss per share are the same for the periods presented. Stock-Based Compensation The Company uses the Black-Scholes option-pricing model to determine the fair value of stock options and the Company’s ESPP awards. The determination of the fair value of stock-based payment awards using an option-pricing model is affected by the Company’s stock price as well as assumptions regarding a number of complex and subjective variables. Stock-based compensation expense is recognized on a straight-line basis over the requisite service period for each award. Further, stock-based compensation expense recognized in the Company’s Consolidated Statements of Operations is based on awards expected to vest and therefore the amount of expense has been reduced for estimated forfeitures, which are based on historical experience. If actual forfeitures differ from estimates at the time of grant they will be revised in subsequent periods. The Company uses a lattice model with a Monte Carlo simulation to value restricted stock unit awards with performance and market conditions. This valuation methodology utilizes the closing price of the Company’s common stock on grant date and several key assumptions, including expected volatility of the Company’s stock price, risk-free rates of return, expected dividend yield and estimated total shareholder return. If factors change and different assumptions are employed in determining the fair value of stock-based awards, the stock-based compensation expense recorded in future periods may differ significantly from what was recorded in the current period. See Note 17 to these Consolidated Financial Statements for further information. Nonqualified Deferred Compensation Plan The Company’s Nonqualified Deferred Compensation Plan (the NQDC Plan) allows eligible employees, including members of the Company’s Board of Directors (the Board), management and certain highly-compensated employees as designated by the NQDC Plan’s administrative committee, to make voluntary deferrals of compensation to specified dates, retirement or death. Participants are permitted to defer portions of their salary, annual cash bonus and restricted stock. The Company is not allowed to make additional direct contributions to the NQDC Plan on behalf of the participants without further action by the Board. All of the investments held in the NQDC Plan are classified as trading securities and recorded at fair value with changes in the investments’ fair values recognized as earnings in the period they occur. Company stock issued and held by the NQDC Plan is accounted for similarly to treasury stock in that the value of the employer stock is determined on the date the restricted stock vests and the shares are issued into the NQDC Plan. The restricted stock issued into the NQDC Plan is recorded as stockholders’ equity and changes in the fair value of the corresponding liability are recognized in earnings as incurred. The corresponding liability for the NQDC Plan is included in Accounts Payable and Accrued Liabilities and Other Long-Term Liabilities in the Company’s Consolidated Balance Sheets. The corresponding asset for the NQDC Plan is included in Other Current Assets and Other Assets in the Company’s Consolidated Balance Sheets. Income Taxes The Company calculates and provides for income taxes in each of the tax jurisdictions in which it operates. Deferred tax assets and liabilities, measured using enacted tax rates, are recognized for the future tax consequences of temporary differences between the tax and financial statement basis of assets and liabilities. A valuation allowance reduces the deferred tax assets to the amount that is more likely than not to be realized. The Company establishes liabilities or reduces assets for uncertain tax positions when the Company believes certain tax positions are not more likely than not of being sustained if challenged. Each quarter, the Company evaluates these uncertain tax positions and adjusts the related tax assets and liabilities in light of changing facts and circumstances. The Company uses financial projections to support its net deferred tax assets, which contain significant assumptions and estimates of future operations. If such assumptions were to differ significantly, it may have a material impact on the Company’s ability to realize its deferred tax assets. At the end of each period, the Company will reassess the ability to realize its deferred tax benefits. If it is more likely than not that the Company would not realize the deferred tax benefits, a valuation allowance may need to be established against all or a portion of the deferred tax assets, which will result in a charge to tax expense. Foreign Currency and Other Hedging Instruments The Company engages in transactions denominated in foreign currencies and, as a result, is exposed to changes in foreign currency exchange rates. To manage the volatility resulting from fluctuating foreign currency exchange rates, the Company nets its exposures, where possible to take advantage of natural offsets and enters into forward foreign currency exchange contracts for the remaining exposures. The Company accounts for its derivative instruments as either assets or liabilities on the balance sheet and measures them at fair value. Derivatives that are not defined as hedging instruments are adjusted to fair value through earnings. Gains and losses resulting from changes in fair value are accounted for depending on the use of the derivative and whether it is designated and qualifies for hedge accounting. The Company assesses, both at inception and on an ongoing basis, whether the derivatives that are used in hedging transactions are highly effective in offsetting the changes in cash flows of the hedged items. The Company also assesses hedge ineffectiveness on a monthly basis and records the gain or loss related to the ineffective portion to current earnings. If the Company determines that a forecasted transaction is no longer probable of occurring, it discontinues hedge accounting for the affected portion of the hedge instrument, and any related unrealized gain or loss on the contract is recognized in current earnings. See Note 12 to these Consolidated Financial Statements for further information. Fair Value of Financial Instruments The Company discloses the fair value of financial instruments for assets and liabilities for which the value is practicable to estimate. The carrying amounts of all cash equivalents, short-term and long-term investments and forward exchange contracts approximate fair value based upon quoted market prices. The fair values of trade accounts receivables, accounts payable and other financial instruments approximate carrying value due to their short-term nature, and would be considered level 2 items in the fair value hierarchy. Business Combinations The Company allocates the purchase price of acquired businesses to the tangible and intangible assets acquired and liabilities assumed based upon their estimated fair values on the acquisition date. The purchase price allocation process requires management to make significant estimates and assumptions, especially at the acquisition date with respect to intangible assets and in-process research and development (IPR&D). In connection with the purchase price allocations for acquisitions, the Company estimates the fair value of contingent payments utilizing a probability-based income approach inclusive of an estimated discount rate. Contingent Acquisition Consideration Payable The Company determines the fair value of contingent acquisition consideration payable on the acquisition date using a probability-based income approach utilizing an appropriate discount rate. Each reporting period thereafter, the Company revalues these obligations and records increases or decreases in their fair value as adjustments to Intangible Asset Amortization and Contingent Consideration in the Company’s Consolidated Statements of Operations. Changes in the fair value of the contingent acquisition consideration payable can result from adjustments to the estimated probability and assumed timing of achieving the underlying milestones, as well as from changes to the discount rates and periods. Comprehensive Income (Loss) and Accumulated Other Comprehensive Income Comprehensive income (loss) includes net income (loss) and certain changes in stockholders’ equity that are excluded from net income (loss), such as changes in unrealized gains and losses on the Company’s available-for-sale securities, unrealized gains (losses) on foreign currency hedges and changes in the Company’s cumulative foreign currency translation account. Reclassifications and Adjustments Certain items in the prior year’s Consolidated Financial Statements have been reclassified to conform to the current presentation. |
RECENT ACCOUNTING PRONOUNCEMENT
RECENT ACCOUNTING PRONOUNCEMENTS | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Changes And Error Corrections [Abstract] | |
RECENT ACCOUNTING PRONOUNCEMENTS | (4) RECENT ACCOUNTING PRONOUNCEMENTS In April 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. ASU 2015-03, Interest–Imputation of Interest (Subtopic 835-30) Simplifying the Presentation of Debt Issuance Costs , In July 2015, the FASB deferred the effective date for ASU No. 2014-09, Revenue from Contracts with Customers , Revenue Recognition (Topic 605) In July 2015, the FASB issued ASU No. 2015-11, Inventory In September 2015, the FASB issued ASU No. 2015-16, Simplifying the Accounting for Measurement-Period Adjustments In November 2015 the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities |
ACQUISITIONS
ACQUISITIONS | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
ACQUISITIONS | (5) ACQUISITIONS Prosensa Holding N.V. On January 29, 2015, the Company completed the acquisition of Prosensa Holding N.V. (Prosensa), a public limited liability company organized under the laws of the Netherlands, for a total purchase price of $751.5 million. In connection with the acquisition of Prosensa, the Company recognized transaction costs of $9.7 million, of which $7.0 million and $2.7 million, was recognized in the years ended December 31, 2015 and 2014, respectively. Prosens a was an innovative biotechnology company engaged in the discovery and development of ribonucleic acid (RNA)-modulating therapeutics for the treatment of genetic disorders. Prosensa’s primary focus was on rare neuromuscular and neurodegenerative disorders with a large unmet medical need, including subsets of patients with Duchenne muscular dystrophy (DMD), myotonic dystrophy and Huntington’s disease. Prosensa’s clinical portfolio of RNA-based product candidates was focused on the treatment of DMD. Each of Prosensa’s DMD compounds has been granted orphan drug status in the United States (the U.S.) and the European Union (the EU). Prosensa’s lead product, Kyndrisa (drisapersen), was under review during most of 2015 as part of a rolling new drug application (NDA) with the Food and Drug Administration (the FDA). On June 8, 2015, the Company announced the submission of a marketing authorization application (MAA) for Kyndrisa with the European Medicines Agency (the EMA). In connection with its acquisition of Prosensa, the Company made cash payments totaling $680.1 million, which consisted of $620.7 million for approximately 96.8% of Prosensa’s ordinary shares (the Prosensa Shares), $38.6 million for the options that vested pursuant to the Company’s tender offer for the Prosensa Shares and $20.8 million to the remaining Prosensa shareholders that did not tender their shares under the tender offer. Additionally, for each Prosensa Share, the Company issued one non-transferable contingent value right (the CVR), which represents the contractual right to receive a cash payment of up to $4.14 per Prosensa Share, or an aggregate of approximately $160.0 million (undiscounted), upon the achievement of certain product approval milestones. The fair value of the CVRs and acquired in-process research and development (IPR&D) on the acquisition date was $71.4 million and $772.8 million, respectively. The acquisition date fair value of the CVRs and IPR&D was estimated by applying a probability-based income approach utilizing an appropriate discount rate. Key assumptions include a discount rate and various probability factors. See Note 13 to these Consolidated Financial Statements for additional discussion regarding fair value measurements of the CVRs, which is included in contingent acquisition consideration payable. The following table presents the allocation of the purchase consideration for the Prosensa acquisition, including the CVRs, based on fair value. Cash and cash equivalents $ 141,669 Trade accounts receivable 3,086 Other current assets 1,537 Property, plant and equipment 2,683 Intangible assets 497 Other assets 104 Acquired IPR&D 772,808 Total identifiable assets acquired 922,384 Accounts payable and accrued expenses (68,799 ) Debt assumed (57,053 ) Deferred tax liability (193,202 ) Total liabilities assumed (319,054 ) Net identifiable assets acquired 603,330 Goodwill 148,134 Net assets acquired $ 751,464 A substantial portion of the assets acquired consisted of IPR&D related to Prosensa’s product candidates Kyndrisa and exons PRO 044 and PRO 045, which are considered to be indefinite-lived assets until completion or abandonment of the associated research and development (R&D) efforts. The Company determined that the estimated acquisition-date fair value of the intangible assets related to Kyndrisa, and Prosensa’s other primary product candidates, PRO 044 and PRO 045, was $731.8 million, $16.9 million and $24.1 million, respectively. The deferred tax liability relates to the tax impact of future amortization or possible impairments associated with the identified intangible assets acquired, which are not deductible for tax purposes. Prosensa’s results of operations prior to and since the acquisition date are insignificant to the Company’s Consolidated Financial Statements. See Note 8 to these Consolidated Financial Statements for further discussion of the indefinite-lived intangible assets. San Rafael Corporate Center In March 2014, the Company completed the acquisition of the real estate commonly known as the San Rafael Corporate Center (SRCC), located in San Rafael, California. SRCC is a multi-building, commercial property where, prior to the transaction, the Company was leasing a certain portion of the space for its headquarters and related operating activities. The purpose of this acquisition is to allow for future expansion of the Company’s corporate headquarters to accommodate anticipated headcount growth. The acquisition of SRCC has been accounted for as a business combination because the building and the in-place leases met the definition of a business in Accounting Standards Codification 805 (ASC 805), Business Combinations. The following table summarizes the estimated fair values of assets acquired as of the date of acquisition: Estimated Fair Value Estimated Useful Lives Building and improvements $ 94,414 50 years Land 14,565 Land improvements 3,616 10 years Intangible assets 3,905 Remaining lease terms Total identifiable net assets $ 116,500 The fair values assigned to tangible and identifiable intangible assets acquired are based on management’s estimates and assumptions using the information that was available as of the date of the acquisition. The Company believes that the information provides a reasonable basis for estimating the fair values of assets acquired. The following table sets forth the fair value of the components of the identifiable intangible assets acquired by asset class as of the date of acquisition: Above market leases $ 351 In-place leases 3,554 Total intangible assets subject to amortization $ 3,905 The value of any lease intangible assets (such as in-place and above-market leases) is estimated to be equal to the property owners’ avoidance of costs necessary to release the property for a lease term equal to the remaining primary in-place lease term and the value of investment-grade tenancy, which is derived by estimating, based on a review of the market, the cost to be borne by a property owner to replicate a market lease for the remaining in-place term. These costs consist of: (i) rent lost during downtime (e.g., assumed periods of vacancy), (ii) estimated expenses that would be incurred by the property owner during periods of vacancy, (iii) rent concessions (e.g., free rent), (iv) leasing commissions and (v) tenant improvement allowances. The Company determined these values using management’s estimates along with third-party appraisals. The Company will amortize the capitalized value of lease intangible assets over the remaining lives of the underlying leases. Lease intangible assets are amortized as a reduction in (addition to) third-party tenant revenue, which is included in Royalty, License and Other Revenues on the Company’s Consolidated Statements of Operations for the years ended December 31, 2015 and 2014 . The amount of third-party tenant revenue (included in the line item Royalty, License and Other Revenues) included in the Company’s Consolidated Statements of Operations for the years ended December 31, 2015 and 2014, was $2.7 million and $4.0 million, respectively. Amortization expense recorded as a reduction of third-party tenant revenues for the years December 31, 2015 and 2014 were $1.2 million and $1.8 million, respectively. The amount of net income/loss from third-party tenants for the years ended December 31, 2015 and 2014, was insignificant the to the Company’s Consolidated Statement of Operations. SRCC’s results of operations prior to the acquisition were insignificant to the Company’s Consolidated Financial Statements. Included in Selling, General and Administrative (SG&A) expenses are transaction costs incurred in connection with the acquisition of SRCC of $0.3 million during 2014. In connection with the purchase of SRCC, the Company recognized a gain of $8.8 million in the year ended December 31, 2014, due to the early termination of the Company’s pre-existing lease and the realization of the remaining balance in deferred rent and the reversal of the related asset retirement obligation upon acquisition of the SRCC. $2.7 million and $6.1 million of the gain were included in SG&A and R&D expenses, respectively. The allocation of the gain to SG&A and R&D is consistent with the Company’s allocation practices for facility costs for this previously leased space. |
GOODWILL
GOODWILL | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
GOODWILL | (6) GOODWILL Goodwill is tested for impairment on an annual basis and between annual tests if the Company becomes aware of any events occurring or changes in the circumstances that would indicate a reduction in the fair value of the goodwill below its carrying amount. The following table represents the changes in goodwill for the year ended December 31, 2015: Balance at December 31, 2014 $ 54,258 Addition of goodwill related to the acquisition of Prosensa 148,134 Reduction of goodwill related to the sale of talazoparib (1) (5,353 ) Balance at December 31, 2015 $ 197,039 (1) See Note 8 to these Consolidated Financial Statements for additional discussion related to the sale of talazoparib. During the fourth quarter of 2015, the Company performed its annual impairment review and determined no impairments of goodwill existed at December 31, 2015. |
INVESTMENTS
INVESTMENTS | 12 Months Ended |
Dec. 31, 2015 | |
Investments Schedule [Abstract] | |
INVESTMENTS | (7) INVESTMENTS All investments were classified as available-for-sale at December 31, 2015 and 2014. The amortized cost, gross unrealized holding gains or losses, and fair value of the Company’s available-for-sale securities by major security type at December 31, 2015 and 2014 are summarized in the tables below: Amortized Cost Gross Unrealized Holding Gains Gross Unrealized Holding Losses Aggregate Fair Value at December 31, 2015 Certificates of deposit $ 63,919 $ 1 $ — $ 63,920 Corporate debt securities 358,625 20 (732 ) 357,913 Commercial paper 12,733 — — 12,733 U.S. government agency securities 186,882 — (344 ) 186,538 Greek government-issued bonds 48 79 — 127 Total $ 622,207 $ 100 $ (1,076 ) $ 621,231 Amortized Cost Gross Unrealized Holding Gains Gross Unrealized Holding Losses Aggregate Fair Value at December 31, 2014 Certificates of deposit $ 72,302 $ 1 $ — $ 72,303 Corporate debt securities 95,478 — (342 ) 95,136 Greek government-issued bonds 50 73 — 123 Total $ 167,830 $ 74 $ (342 ) $ 167,562 The Company has two investments in marketable equity securities measured using quoted prices in their respective active markets that are collectively considered strategic investments. As of December 31, 2015, the fair value of the Company’s strategic investments of $18.1 million included an unrealized gain of $12.7 million. As of December 31, 2014, the fair value of the Company’s strategic investments of $30.8 million includes an unrealized gain of $18.3 million. These investments are recorded in Other Assets in the Company’s Consolidated Balance Sheets. The fair values of available-for-sale securities by contractual maturity were as follows: December 31, 2015 2014 Maturing in one year or less $ 195,579 $ 69,706 Maturing after one year through five years 425,652 97,856 Total $ 621,231 $ 167,562 Impairment assessments are made at the individual security level each reporting period. When the fair value of an investment is less than its cost at the balance sheet date, a determination is made as to whether the impairment is other-than-temporary and, if it is other-than-temporary, an impairment loss is recognized in earnings equal to the difference between the investment’s amortized cost and fair value at such date. As of December 31, 2015, some of the Company’s investments were in an unrealized loss position. The Company determined that it did not have the ability and intent to hold all investments that have been in a continuous loss position until maturity or recovery, thus recognizing an other-than-temporary impairment of $1.2 million in the year ended December 31, 2015. See Note 13 to these Consolidated Financial Statements for additional discussion regarding the fair value of the Company’s available-for-sale securities. |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS | (8) INTANGIBLE ASSETS Intangible assets consisted of the following: December 31, 2015 2014 Intangible assets: Finite-lived intangible assets $ 129,572 $ 123,365 Indefinite-lived intangible assets 607,548 74,430 Gross intangible assets: 737,120 197,795 Less: Accumulated amortization (53,124 ) (41,217 ) Net carrying value $ 683,996 $ 156,578 Finite-Lived Intangible Assets The following table summarizes the net-book-value and estimated remaining life of the Company’s finite-lived intangible assets at December 31, 2015: Net Balance at December 31, 2015 Average Remaining Life Repurchased royalty rights $ 53,438 7.9 years Acquired intellectual property 19,652 8.6 years License payments for marketing approvals 2,380 5.7 years SRCC in-place and above market tenant leases 978 Remaining lease terms Total $ 76,448 As of December 31, 2015, the estimated future amortization expense associated with the Company’s finite-lived intangible assets for each of the five succeeding fiscal years is as follows: Fiscal Year Amount 2016 $ 11,371 2017 10,904 2018 10,874 2019 10,605 2020 8,188 Thereafter 24,506 $ 76,448 Indefinite-Lived Intangible Assets Indefinite-lived intangible assets consisted of the following: December 31, 2015 2014 In-Process Research and Development: Talazoparib $ — $ 35,150 Kyndrisa 533,064 — Other exons 41,044 — Reveglucosidase alfa 25,010 25,010 Other acquired pre-clinical compounds 8,430 14,270 Net carrying value $ 607,548 $ 74,430 Intangible assets related to IPR&D assets are considered to be indefinite-lived until the completion or abandonment of the associated R&D efforts. During the period the assets are considered indefinite-lived, they will not be amortized but will be tested for impairment on an annual basis and between annual tests if the Company becomes aware of any events occurring or changes in circumstances that would indicate a reduction in the fair value of the IPR&D assets below their respective carrying amounts. If and when development is complete, which generally occurs if and when regulatory approval to market a product is obtained, the associated assets would be deemed finite-lived and would then be amortized based on their respective estimated useful lives at that point in time. On October 6, 2015, the Company completed the sale of talazoparib to Medivation Inc. (Medivation). Pursuant to the Asset Purchase Agreement, Medivation paid the Company an upfront payment of $410.0 million upon the closing of the transaction. In addition, contingent upon the successful development and commercialization of talazoparib, Medivation will pay the Company milestone payments of up to $160.0 million and mid-single digit percentage royalties on net sales of talazoparib. During the fourth quarter of 2015, the Company recognized a net gain of $369.5 million related to the sale of the talazoparib intangible assets. See Note 6 to these Consolidated Financial Statements for additional discussion. Based on the current U.S. development efforts the Company recorded an impairment charge of $198.7 million during the fourth quarter of 2015. The Marketing Authorization Application (MAA) for Kyndrisa remains under review in the EU. The Company anticipates that the Committee for Medicinal Products for Human Use (CHMP) of the European Medicines Agency (EMA) will provide an opinion for its MAA for Kyndrisa in the second quarter of 2016. If the CHMP opinion is positive, the MAA will be referred to the European Commission (EC). If the MAA is approved by the EC, the Company would receive marketing authorization for Kyndrisa in all EU Member States. Additionally, during the fourth quarter of 2015, the Company performed its annual impairment review and determined that no other intangible assets were impaired as of December 31, 2015. |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2015 | |
Property Plant And Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT | (9) PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment, net consisted of the following: December 31, 2015 2014 Building and improvements $ 442,100 $ 335,991 Manufacturing and laboratory equipment 145,313 124,564 Computer hardware and software 113,442 97,032 Leasehold improvements 44,247 39,297 Furniture and equipment 22,817 13,717 Land improvements 4,881 4,106 Land 45,727 29,358 Construction-in-progress 164,283 108,340 982,810 752,405 Less: Accumulated depreciation (278,603 ) (228,889 ) Total property, plant and equipment, net $ 704,207 $ 523,516 The construction-in-process balance primarily consists of costs related to active construction projects including the expansion of the Company’s corporate headquarters in San Rafael, California and the build-out of the manufacturing facility in Shanbally, Ireland. Depreciation for the years ended December 31, 2015, 2014 and 2013 was $50.1 million, $44.3 million and $36.5 million, respectively, of which $14.6 million, $11.0 million and $11.0 million was capitalized into inventory, respectively. Capitalized interest related to the Company’s property, plant and equipment purchases for each of the three years ended December 31, 2015 was insignificant. |
INVENTORY
INVENTORY | 12 Months Ended |
Dec. 31, 2015 | |
Inventory Disclosure [Abstract] | |
INVENTORY | (10) INVENTORY Inventory consisted of the following: December 31, 2015 2014 Raw materials $ 46,115 $ 22,488 Work-in-process 150,289 114,393 Finished goods 75,279 62,571 Total inventory $ 271,683 $ 199,452 The inventory balances at December 31, 2015 and 2014 do not contain any pre-launch product costs. |
SUPPLEMENTAL BALANCE SHEET INFO
SUPPLEMENTAL BALANCE SHEET INFORMATION | 12 Months Ended |
Dec. 31, 2015 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
SUPPLEMENTAL BALANCE SHEET INFORMATION | (11) SUPPLEMENTAL BALANCE SHEET INFORMATION Other current assets consisted of the following: December 31, 2015 2014 Prepaid expenses $ 27,957 $ 35,390 Short-term forward currency exchange contract assets 10,478 10,513 Promissory notes receivable, net — 46,946 Restricted investments 7,348 2,354 Convertible promissory note conversion option — 2,386 Other receivables 14,150 9,733 Other 445 1,202 Total other current assets $ 60,378 $ 108,524 Other assets consisted of the following: December 31, 2015 2014 Deposit for business acquisition $ 371,756 $ — Deposits 8,606 12,021 Strategic investments 18,056 30,811 Long-term forward foreign currency exchange contract assets 3,533 5,387 Other 6,693 6,338 Total other assets $ 408,644 $ 54,557 Accounts payable and accrued liabilities consisted of the following: December 31, 2015 2014 Accounts payable and accrued operating expenses $ 179,294 $ 139,513 Accrued income taxes 59,572 — Accrued compensation expense 78,424 45,479 Accrued vacation expense 16,921 12,540 Accrued rebates payable 32,553 14,859 Accrued royalties payable 10,412 9,050 Value added taxes payable 6,377 5,479 Other 8,958 4,924 Total accounts payable and accrued liabilities $ 392,511 $ 231,844 The roll forward of significant estimated accrued rebates, reserve for cash discounts and allowance for doubtful accounts for the years ended December 31, 2015, 2014 and 2013 were as follows: Balance at Beginning of Period Provision for Current Period Sales Provision/ (Reversals) for Prior Period Sales Actual Charges Related to Current Period Sales Actual Charges Related to Prior Period Sales Balance at End of Period Year ended December 31, 2015: Accrued rebates $ 14,859 $ 45,356 $ (1,245 ) $ (18,421 ) $ (7,996 ) $ 32,553 Reserve for cash discounts 688 7,402 — (6,722 ) (537 ) 831 Sales return reserve — 40 — — — 40 Allowance for doubtful accounts 490 — (397 ) — — 93 Year ended December 31, 2014: Accrued rebates $ 10,429 $ 24,431 $ (1,159 ) $ (12,768 ) $ (6,074 ) $ 14,859 Reserve for cash discounts 388 6,435 — (5,747 ) (388 ) 688 Sales return reserve 907 — (907 ) — — — Allowance for doubtful accounts 529 410 (319 ) — (130 ) 490 Year ended December 31, 2013: Accrued rebates $ 9,625 $ 18,872 $ (1,169 ) $ (12,025 ) $ (4,874 ) $ 10,429 Reserve for cash discounts 372 4,549 — (4,191 ) (342 ) 388 Sales return reserve — 907 — — — 907 Allowance for doubtful accounts 348 138 43 — — 529 |
DERIVATIVE INSTRUMENTS AND HEDG
DERIVATIVE INSTRUMENTS AND HEDGING STRATEGIES | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
DERIVATIVE INSTRUMENTS AND HEDGING STRATEGIES | (12) DERIVATIVE INSTRUMENTS AND HEDGING STRATEGIES Foreign Currency Exchange Rate Exposure The Company uses forward foreign currency exchange contracts to hedge certain operational exposures resulting from potential changes in foreign currency exchange rates. Such exposures result from portions of the Company’s forecasted revenues and operating expenses being denominated in currencies other than the U.S. dollar, primarily the Euro, the British Pound and the Brazilian Real. The Company designates certain of these forward foreign currency exchange contracts as hedging instruments and enters into some forward foreign currency exchange contracts that are considered to be economic hedges that are not designated as hedging instruments. Whether designated or undesignated, these forward foreign currency exchange contracts protect against the reduction in value of forecasted foreign currency cash flows resulting from product revenues, royalty revenues, operating expenses and asset or liability positions designated in currencies other than the U.S. dollar. The fair values of forward foreign currency exchange contracts are estimated using current exchange rates and interest rates, and take into consideration the current creditworthiness of the counterparties or the Company, as applicable. Information regarding the specific instruments used by the Company to hedge its exposure to foreign currency exchange rate fluctuations is provided below. At December 31, 2015, the Company had 221 forward foreign currency exchange contracts outstanding to sell a total of 309.0 million Euros, 150 forward foreign currency exchange contracts outstanding to purchase 143.1 million Euros, 24 forward foreign currency exchange contract to sell 12.5 million Canadian dollars and 12 foreign currency exchange contracts to sell 39.2 billion Columbian Pesos with expiration dates ranging from January 2016 through November 2018. These hedges were entered into in order to protect against the fluctuations in revenue and operating expenses associated with Euro-denominated cash flows. The Company has formally designated these forward foreign currency exchange contracts as cash flow hedges and expects them to be highly effective in offsetting fluctuations in revenues and operating expenses denominated in Euros related to changes in foreign currency exchange rates. The Company also enters into forward foreign currency exchange contracts that are not designated as hedges for accounting purposes. The changes in fair value of these forward foreign currency exchange contracts are included as a part of SG&A expense in the Company’s Consolidated Statements of Operations. At December 31, 2015, the Company had one outstanding forward foreign currency exchange contract to sell 40.1 million Euros and one outstanding forward foreign currency exchange contract to sell 3.9 million British Pounds, which were not designated as hedges for accounting purposes and matured on January 31, 2016. The maximum length of time over which the Company is hedging its exposure to the reduction in value of forecasted foreign currency revenues through forward foreign currency exchange contracts is through November 2018. Over the next twelve months, the Company expects to reclassify $13.1 million from accumulated other comprehensive income to earnings as the forecasted revenue transactions occur. The fair value carrying amounts of the Company’s derivative instruments were as follows: Asset Derivatives Liability Derivatives December 31, 2015 December 31, 2015 Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives designated as hedging instruments: Forward foreign currency exchange contracts Other current assets $ 10,478 Accounts payable & accrued liabilities $ 1,986 Forward foreign currency exchange contracts Other assets 3,533 Other long- term liabilities 3,057 Total $ 14,011 $ 5,043 Derivatives not designated as hedging instruments: Forward foreign currency exchange contracts Other current assets $ — Accounts payable & accrued liabilities $ 22 Total — 22 Total value of derivative contracts $ 14,011 $ 5,065 Asset Derivatives Liability Derivatives December 31, 2014 December 31, 2014 Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives designated as hedging instruments: Forward foreign currency exchange contracts Other current assets $ 10,206 Accounts payable & accrued liabilities $ — Forward foreign currency exchange contracts Other assets 5,387 Other long- term liabilities — Total $ 15,593 $ — Derivatives not designated as hedging instruments: Forward foreign currency exchange contracts Other current assets $ 307 Accounts payable & accrued liabilities $ 12 Total 307 12 Total value of derivative contracts $ 15,900 $ 12 The effect of the Company’s derivative instruments on the Consolidated Financial Statements for the years ended December 31, 2015, 2014 and 2013 was as follows: Forward Foreign Currency Exchange Contracts 2015 2014 2013 Derivatives Designated as Hedging Instruments: Net gain (loss) recognized in Other Comprehensive Income (OCI) (1) $ 17,300 $ 18,078 $ (1,366 ) Net gain (loss) reclassified from accumulated OCI into income (2) 19,604 643 49 Net gain (loss) recognized in net loss (3) (727 ) (294 ) 310 Derivatives Not Designated as Hedging Instruments: Net gain (loss) recognized in net loss (4) $ 4,493 $ 8,010 $ (2,041 ) (1) Net change in the fair value of the effective portion classified as OCI. (2) Effective portion classified as net product revenues. (3) Ineffective portion and amount excluded from effectiveness testing classified as SG&A expense. (4) Classified as selling, general and administrative expense. At December 31, 2015, 2014 and 2013, accumulated other comprehensive income before taxes associated with forward foreign currency exchange contracts qualifying for hedge accounting treatment was a gain of $13.6 million, gain of $15.9 million and a loss of $2.4 million, respectively. The Company is exposed to counterparty credit risk on all of its derivative financial instruments. The Company has established and maintains strict counterparty credit guidelines and enters into hedges only with financial institutions that are investment grade or better to minimize the Company’s exposure to potential defaults. The Company does not require collateral to be pledged under these agreements. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | (13) FAIR VALUE MEASUREMENTS The Company measures certain financial assets and liabilities at fair value on a recurring basis, including available-for-sale fixed income securities and foreign currency derivatives. The tables below present the fair value of these financial assets and liabilities determined using the following input levels. Fair Value Measurements at December 31, 2015 Quoted Price in Active Markets For Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Assets: Cash and cash equivalents: Overnight deposits $ 290,731 $ — $ — $ 290,731 Money market instruments — 106,309 — 106,309 Total cash and cash equivalents 290,731 106,309 — 397,040 Available-for-sale securities: Short-term: Certificates of deposit — 56,951 — 56,951 Corporate debt securities — 42,673 — 42,673 Commercial paper — 12,733 — 12,733 U.S. government agency securities — 83,222 — 83,222 Long-term: Certificates of deposit — 6,969 — 6,969 Corporate debt securities — 315,240 — 315,240 U.S. government agency securities — 103,316 — 103,316 Greek government-issued bonds — 127 — 127 Total available-for-sale securities — 621,231 — 621,231 Other Current Assets: Nonqualified Deferred Compensation Plan assets — 440 — 440 Forward foreign currency exchange contract (1) — 10,478 — 10,478 Restricted investments (2) — 7,348 — 7,348 Total other current assets — 18,266 — 18,266 Other Assets: Nonqualified Deferred Compensation Plan assets — 6,362 — 6,362 Forward foreign currency exchange contract (1) — 3,533 — 3,533 Strategic investment (4) 18,056 — — 18,056 Total other assets 18,056 9,895 — 27,951 Total assets $ 308,787 $ 755,701 $ — $ 1,064,488 Liabilities: Current Liabilities: Nonqualified Deferred Compensation Plan liability $ 1,151 $ 440 $ — $ 1,591 Forward foreign currency exchange contract (1) — 2,008 — 2,008 Contingent acquisition consideration payable — — 52,946 52,946 Total current liabilities 1,151 2,448 52,946 56,545 Other long-term liabilities: Nonqualified Deferred Compensation Plan liability 24,341 6,362 — 30,703 Forward foreign currency exchange contract (1) — 3,057 — 3,057 Contingent acquisition consideration payable — — 32,663 32,663 Total other long-term liabilities 24,341 9,419 32,663 66,423 Total liabilities $ 25,492 $ 11,867 $ 85,609 $ 122,968 Fair Value Measurements at December 31, 2014 Quoted Price in Active Markets For Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Assets: Cash and cash equivalents: Overnight deposits $ 225,159 $ — $ — $ 225,159 Money market instruments — 650,327 — 650,327 Total cash and cash equivalents 225,159 650,327 — 875,486 Available-for-sale securities: Short-term: Certificates of deposit — 54,174 — 54,174 Corporate debt securities — 15,532 — 15,532 Long-term: Certificates of deposit — 18,129 — 18,129 Corporate debt securities — 79,604 — 79,604 Greek government-issued bonds — 123 — 123 Total available-for-sale securities — 167,562 — 167,562 Other Current Assets: Nonqualified Deferred Compensation Plan assets — 514 — 514 Forward foreign currency exchange contract (1) — 10,513 — 10,513 Restricted investments (2) — 2,354 — 2,354 Embedded derivative (3) — — 2,386 2,386 Total other current assets — 13,381 2,386 15,767 Other Assets: Nonqualified Deferred Compensation Plan assets — 5,112 — 5,112 Restricted investments (2) — 5,387 — 5,387 Strategic investment (4) 30,811 — — 30,811 Total other assets 30,811 10,499 — 41,310 Total assets $ 255,970 $ 841,769 $ 2,386 $ 1,100,125 Liabilities: Current Liabilities: Nonqualified Deferred Compensation Plan liability $ 1,790 $ 514 $ — $ 2,304 Forward foreign currency exchange contract (1) — 12 — 12 Contingent acquisition consideration payable — — 3,895 3,895 Total current liabilities 1,790 526 3,895 6,211 Other long-term liabilities: Nonqualified Deferred Compensation Plan liability 18,453 5,112 — 23,565 Contingent acquisition consideration payable — — 38,767 38,767 Total other long-term liabilities 18,453 5,112 38,767 62,332 Total liabilities $ 20,243 $ 5,638 $ 42,662 $ 68,543 (1) See Note 12 to these Consolidated Financial Statements for further information regarding the derivative instruments. (2) The restricted investments at December 31, 2015 and 2014 secure the Company’s irrevocable standby letter of credit obtained in connection with certain commercial agreements. (3) The embedded derivative represents the fair value of the conversion feature of a promissory note which may be settled in the issuer’s underlying shares. (4) The Company has investments in marketable equity securities measured using quoted prices in an active market that are considered strategic investments. See Note 7 to these Consolidated Financial Statements for additional discussion regarding the Company’s strategic investments. There were no transfers between levels during the year ended December 31, 2015. The Company’s Level 2 securities are valued using third-party pricing sources. The pricing services utilize industry standard valuation models, including both income and market-based approaches, for which all significant inputs are observable, either directly or indirectly, to estimate fair value. These inputs include reported trades of and broker/dealer quotes on the same or similar securities, issuer credit spreads, benchmark securities, prepayment/default projections based on historical data and other observable inputs. The Company validates the prices provided by its third-party pricing services by understanding the models used, obtaining market values from other pricing sources, analyzing pricing data in certain instances and confirming those securities traded in active markets. See Note 7 to these Consolidated Financial Statements for further information regarding the Company’s financial instruments. Liabilities measured at fair value using Level 3 inputs consisted of contingent acquisition consideration payable and asset retirement obligations. The Company’s contingent acquisition consideration payable is estimated using a probability-based income approach utilizing an appropriate discount rate. Key assumptions used by management to estimate the fair value of contingent acquisition consideration payable include estimated probabilities, the estimated timing of when a milestone may be attained and assumed discount periods and rates. Subsequent changes in the fair value of the contingent acquisition consideration payable, resulting from management’s revision of key assumptions, will be recorded in Intangible Asset Amortization and Contingent Consideration in the Company’s Consolidated Statements of Operations. The probability-based income approach used by management to estimate the fair value of the contingent acquisition consideration is most sensitive to changes in the estimated probabilities. Contingent acquisition consideration payable at December 31, 2014 $ 42,662 Addition of contingent consideration payable related to the Prosensa acquisition 71,402 Reversal of contingent liability related to no early FDA approval for Kyndrisa (39,726 ) Changes in the fair value of other acquisition contingent consideration payable 11,271 Contingent acquisition consideration payable at December 31, 2015 $ 85,609 Under certain of the Company’s lease agreements, the Company is contractually obligated to return leased space to its original condition upon termination of the lease agreement. The Company records an asset retirement obligation liability and a corresponding capital asset in an amount equal to the estimated fair value of the obligation when estimable. In subsequent periods, for each such lease, the Company records Interest Expense to accrete the asset retirement obligation liability to full value and depreciates each capitalized asset retirement obligation asset, both over the term of the associated lease agreement. Asset retirement obligations at December 31, 2014 $ 3,765 Accretion expense 148 Additions 820 Settlements (29 ) Asset retirement obligations at December 31, 2015 $ 4,704 The Company acquired intangible assets as a result of various business acquisitions. The estimated fair value of these long-lived assets was measured using Level 3 inputs as of the acquisition date. |
CONVERTIBLE DEBT
CONVERTIBLE DEBT | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
CONVERTIBLE DEBT | (14) CONVERTIBLE DEBT 2018/2020 Notes On October 15, 2013, the Company issued $750.0 million in aggregate principal amount of senior subordinated convertible notes consisting of $375.0 million in aggregate principal amount of 0.75% senior subordinated convertible notes due in October 2018 (the 2018 Notes) and $375.0 million in aggregate principal amount of 1.50% senior subordinated convertible notes due in October 2020 (the 2020 Notes and, together with the 2018 Notes, the Notes). Net proceeds from the offering were $726.2 million. The 2018 Notes and the 2020 Notes bear interest at a rate of 0.75% and 1.5% per year, respectively, which is payable semiannually in arrears on April 15 and October 15 of each year, beginning on April 15, 2014. The Notes are senior unsecured obligations, and rank (i) equally to any of the Company’s existing and future unsecured senior debt, (ii) senior to any of the Company’s future indebtedness that is expressly subordinated to the Notes, and (iii) effectively junior to any secured indebtedness to the extent of the value of the assets securing such indebtedness. Upon the occurrence of a “fundamental change”, as defined in the indenture, the holders may require the Company to repurchase all or a portion of the Notes for cash at 100% of the principal amount of the Notes being purchased, plus any accrued and unpaid interest. The Notes are convertible into 7,965,975 shares of the Company’s common stock under certain circumstances prior to maturity at a conversion rate of 10.6213 shares per $1,000 principal amount of the Notes, which represents a conversion price of $94.15 per share, subject to adjustment under certain conditions. Holders may convert their notes at their option at any time prior to July 15, 2018, in the case of the 2018 Notes, and July 15, 2020, in the case of the 2020 Notes, only under the following circumstances: (1) during any calendar quarter commencing after the calendar quarter ending on March 31, 2014 (and only during such calendar quarter), if the last reported sale price of the Company’s common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the applicable conversion price on each applicable trading day; (2) during the five business day period after any five consecutive trading day period (the measurement period) in which the trading price per $1,000 principal amount of the relevant notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of the Company’s common stock and the applicable conversion rate on each such trading day; or (3) upon the occurrence of specified corporate events. Upon conversion, the Company may pay cash, shares of the Company’s common stock or a combination of cash and stock, as determined by the Company in its discretion. The Company has separately accounted for the liability and equity components of the Notes by allocating the proceeds from issuance of the Notes between the liability component and the embedded conversion option, or equity component. This allocation was done by first estimating an interest rate at the time of issuance for similar notes that do not include the embedded conversion option. The Company allocated $156.2 million to the equity component, net of offering costs of $5.1 million. The Company recorded a discount on the notes of $161.3 million which will be accreted and recorded as additional interest expense over the life of the Notes. Additionally, in connection with the issuance of the Notes, the Company incurred $23.8 million of issuance costs, which are being amortized and recorded as additional interest expense over the life of the Notes. The effective interest rate on the liability component of the Notes for the years ended December 31, 2015 and 2014 was 7.3% and 7.5% for the year ended December 31, 2013. The following table summarizes the additional interest expense recognized for the accretion of the debt discount and amortization of the deferred offering costs. Years Ended December 31, 2015 2014 2013 Convertible Notes due 2018 Amortization of issuance costs $ 1,921 $ 1,910 $ 397 Accretion of debt discount 13,633 12,963 2,620 Convertible Notes due 2020 Amortization of issuance costs 1,283 1,279 264 Accretion of debt discount 11,567 10,930 2,201 Total $ 28,404 $ 27,082 $ 5,482 To minimize the impact of potential dilution upon conversion of the 2018 Notes and the 2020 Notes, the Company entered into capped call transactions separate from the issuance of the Notes with certain counterparties covering 3,982,988 shares of the Company’s common stock, subject to adjustment. The capped calls have a strike price of $94.15 and a cap price of $121.05 and are exercisable when and if the Notes are converted. If upon conversion of the Notes, the price of the Company’s common stock is above the strike price of the capped calls, the counterparties will deliver shares of the Company’s common stock and/or cash with an aggregate value equal to the difference between the price of the Company’s common stock at the conversion date and the strike price, multiplied by the number of shares of the Company’s common stock related to the capped calls being exercised. The Company paid $29.8 million for these capped calls transactions, which was recorded as additional paid-in capital. 2017 Notes In April 2007, the Company sold $324.9 million in aggregate principal amount of senior subordinated convertible notes due in April 2017 (the 2017 Notes), of which $31.4 million remained outstanding at December 31, 2015. The 2017 Notes were issued at face value and bear interest at the rate of 1.875% per annum, payable semi-annually in cash. The 2017 Notes are convertible, at the option of the holder, at any time prior to maturity or redemption, into shares of the Company’s common stock at a conversion price of $20.36 per share, subject to adjustment in certain circumstances. The 2017 Notes do not include a call provision and the Company is unable to unilaterally redeem the 2017 Notes prior to maturity on April 23, 2017. The Company also must repay the 2017 Notes if there is a qualifying change in control or termination of trading of its common stock. If a change of control occurs, the Company will pay a make whole premium by increasing the conversion rate applicable to the 2017 Notes. In connection with the placement of the 2017 Notes, the Company paid $8.5 million in offering costs, which have been deferred and are presented as a direct reduction of the outstanding 2017 Notes. The deferred offering costs are being amortized as interest expense over the life of the debt. For the year ended December 31, 2015, the Company recognized amortization expense of $0.1 million, compared to $0.1 million and $0.4 million for the years ended December 31, 2014 and 2013, respectively. During 2015, the Company entered into separate agreements with three existing holders of its senior subordinated convertible notes due in 2017 pursuant to which such holders converted $8.1 million in aggregate principal amount of the 2017 Notes into 399,469 share of the Company’s common stock. In addition to issuing the requisite number of the Company’s common stock, the Company also made varying cash payments to the holders totaling $0.2 million in the aggregate, which was recognized as Debt Conversion Expense on the Consolidated Statement of Operations for the year ended December 31, 2015. During 2014, the Company entered into two separate agreements with an existing holder of its senior subordinated convertible notes due in 2017 pursuant to which such holder converted $16.5 million in aggregate principal amount of the 2017 Notes into 809,351 shares of the Company’s common stock. In addition to issuing the requisite number of shares of the Company’s common stock, the Company also made varying cash payments to the holder totaling $0.7 million in aggregate, of which $0.7 million was recognized in total as Debt Conversion Expense on the Consolidated Statement of Operations for the year ended December 31, 2014. During 2013, the Company entered into separate agreements with 18 of the existing holders of the 2017 Notes pursuant to which such holders converted $262.8 million in aggregate principal amount of the 2017 Notes into 12,906,780 shares of the Company’s common stock. In addition to issuing the requisite number of shares of the Company’s common stock pursuant to the 2017 Notes, the Company also made varying cash payments to each of the holders, totaling $14.8 million in the aggregate, of which $13.0 million was recognized in total as Debt Conversion Expense in the Company’s Consolidated Statement of Operations for the year ended December 31, 2013 and $1.8 million was for accrued interest. Additionally, the Company reclassified $2.8 million of deferred offering costs to additional paid-in capital in connection with the conversion of the 2017 Notes. The following table summarizes information regarding the Company’s convertible debt at December 31: 2015 2014 Convertible Notes due 2020 $ 374,993 $ 375,000 Unamortized discount (65,478 ) (77,045 ) Unamortized deferred offering costs (6,210 ) (7,493 ) Convertible Notes due 2020, net 303,305 290,462 Convertible Notes due 2018 374,980 375,000 Unamortized discount (41,904 ) (55,537 ) Unamortized deferred offering costs (5,415 ) (7,335 ) Convertible Notes due 2018, net 327,661 312,128 Convertible Notes due 2017 31,430 40,558 Unamortized deferred offering costs (110 ) (246 ) Convertible Notes due 2017, net 31,320 40,312 Total convertible debt, net $ 662,286 $ 642,902 Fair value of fixed rate convertible debt Convertible Notes due in 2020 (1) $ 502,701 $ 456,360 Convertible Notes due in 2018 (1) 482,584 442,448 Convertible Notes due in 2017 (1) 162,016 180,984 Total $ 1,147,301 $ 1,079,792 (1) The fair value of the Company’s fixed rate convertible debt is based on open market trades and is classified as Level 1 in the fair value hierarchy. Interest expense on the Company’s convertible debt consisted of the following: Years Ended December 31, 2015 2014 2013 Coupon interest $ 9,750 $ 9,417 $ 4,550 Amortization of issuance costs 3,294 3,332 1,053 Accretion of debt discount 25,200 23,893 4,821 Total interest expense on convertible debt $ 38,244 $ 36,642 $ 10,424 See Note 15 to these Consolidated Financial Statements for further discussion of the effect of conversion on net loss per common share. |
NET LOSS PER COMMON SHARE
NET LOSS PER COMMON SHARE | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
NET LOSS PER COMMON SHARE | (15) NET LOSS PER COMMON SHARE Potentially issuable shares of common stock include shares issuable upon the exercise of outstanding employee stock option awards, common stock issuable under the ESPP, unvested restricted stock, common stock held by the NQDC Plan and contingent issuances of common stock related to convertible debt. The table below presents potential shares of common stock that were excluded from the computation as they were anti-dilutive using the treasury stock method (in thousands): Years Ended December 31, 2015 2014 2013 Options to purchase common stock 10,323 11,477 13,157 Common stock issuable under the 2017 Notes 1,544 1,992 3,047 Common stock issuable under the 2018 and 2020 Notes 7,966 7,966 7,966 Unvested restricted stock units 1,743 1,244 1,159 Potentially issuable common stock for the ESPP purchases 180 195 197 Common stock held by the NQDC 243 224 193 Total number of potentially issuable shares 21,999 23,098 25,719 The effect of the Notes was excluded from the diluted net loss per common share since they may be settled in cash or shares at the Company’s option and the Company’s current intention is to settle up to the principal amount of the converted notes in cash and any excess conversion value (conversion spread) in shares of the Company’s common stock. Although the Company’s stock price exceeded the conversion price $94.15 at December 31, 2015, the potential shares issuable under the Notes were excluded from the calculation of diluted loss per share as they were anti-dilutive using the if-converted method. During the years ended December 31, 2014 and 2013 the Notes had no effect on diluted net loss per share as the Company’s stock price did not exceed the conversion price of $94.15 per share for the Notes. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | (16) INCOME TAXES The provision for (benefit from) income taxes is based on income/(loss) before income taxes as follows: Years Ended December 31, 2015 2014 2013 U.S. Source $ 182,215 $ 49,411 $ 46,675 Non-U.S. Source (336,939 ) (174,279 ) (223,178 ) Loss before income taxes $ (154,724 ) $ (124,868 ) $ (176,503 ) The U.S. and foreign components of the provision for (benefit from) income taxes are as follows: Years Ended December 31, 2015 2014 2013 Provision for current income tax expense: Federal 84,743 28,093 5,060 State and local 5,323 3,011 1,496 Foreign 3,836 3,614 2,199 93,902 34,718 8,755 Provision for (benefit from) deferred income tax expense: Federal (17,741 ) (20,367 ) (6,084 ) State and local (8,770 ) (4,982 ) (2,658 ) Foreign (50,316 ) (268 ) (163 ) (76,827 ) (25,617 ) (8,905 ) Provision for (benefit from) income taxes $ 17,075 $ 9,101 $ (150 ) The following is a reconciliation of the statutory federal income tax rate to the Company’s effective income tax rate expressed as a percentage of income/(loss) before income taxes: Years Ended December 31, 2015 2014 2013 Federal statutory income tax rate 35.0 % 35.0 % 35.0 % State and local taxes (2.2 )% (1.6 )% (0.3 )% Orphan Drug & General Business Credit 34.8 % 29.3 % 14.7 % Stock compensation expense (2.8 )% (2.4 )% (1.7 )% Changes in the fair value of contingent acquisition consideration payable 0.2 % (3.6 )% (2.9 )% Subpart F income (8.4 )% (9.2 )% — Foreign tax rate differential (46.2 )% (51.5 )% (45.4 )% Other (2.9 )% (3.6 )% 1.6 % Valuation allowance/Deferred benefit (18.5 )% 0.3 % (0.9 )% Effective income tax rate (11.0 )% (7.3 )% 0.1 % The significant components of the Company’s net deferred tax assets are as follows: December 31, 2015 2014 Net deferred tax assets: Net operating loss carryforwards $ 44,942 $ 16,208 Tax credit carryforwards 143,987 171,840 Accrued expenses, reserves, and prepaids 79,029 30,626 Intangible assets 16,177 14,550 Stock-based compensation 49,322 34,133 Inventory 18,942 14,108 Impairment and capital loss carryforwards 5,005 1,997 Other 1,155 928 Valuation allowance (67,708 ) (7,812 ) Total deferred tax assets 290,851 276,578 Joint venture basis difference (1,888 ) (1,781 ) Acquired intangibles (162,689 ) (33,049 ) Convertible notes discount (32,162 ) (39,317 ) Property, plant and equipment (13,192 ) (4,932 ) Unrealized gains (4,256 ) (6,525 ) Total deferred tax liabilities (214,187 ) (85,604 ) Net deferred tax assets $ 76,664 $ 190,974 As of December 31, 2015, the Company had federal net operating loss carryforwards of $22.3 million, state net operating loss carryforwards of $184.1 million and Dutch net operating loss carryforwards of $121.0 million. The Company also had federal research and development and orphan drug credit carryforwards of $299.7 million and state research credit carryovers of $61.0 million. The Company has elected to recognize the excess benefits related to the exercise of employee stock options under a with and without approach, which will be accounted for as an increase to additional paid-in-capital if and when realized. As of December 31, 2015, the Company had unrecognized federal and state stock option benefits of $387.8 million and $79.9 million, respectively. The federal net operating loss carryforwards will expire at various dates beginning in 2027 through 2033 if not utilized. The federal credit carryforward will expire at various dates beginning in 2021 through 2035 if not utilized. The state net operating loss carryforwards will expire at various dates beginning in 2016 through 2035 if not utilized. The Dutch net operating loss carryforwards will expire at various dates beginning in 2016 through 2024 if not utilized. Certain state research credit carryovers will begin to expire in 2019 if not utilized, with others carrying forward indefinitely. The Company’s net operating losses and credits could be subject to annual limitations due to ownership change limitations provided by Internal Revenue Code Section 382 and similar state provisions. An annual limitation could result in the expiration of net operating losses and tax credit carryforward before utilization. There are limitations on the tax attributes of acquired entities however, the Company does not believe the limitations will have a material impact on the utilization of the net operating losses or tax credits. In 2015, the Company established deferred tax assets related to the future contingent consideration on the sale of talazoparib and the net operating loss carryforwards acquired with Prosensa. Due to the uncertainty of the Company’s ability to realize the benefits from these deferred tax assets, the Company has recorded a full valuation allowance on these assets resulting in a $59.9 million increase in the valuation allowance. In 2014, the valuation allowance decreased by $0.5 million primarily due to the expiration of fully capital loss carryforwards. The financial statement recognition of the benefit for a tax position is dependent upon the benefit being more likely than not to be sustainable upon audit by the applicable taxing authority. If this threshold is met, the tax benefit is then measured and recognized at the largest amount that is greater than 50% likely of being realized upon ultimate settlement. A reconciliation of the beginning and ending amount of unrecognized tax benefits for the years ended December 31, 2015 is as follows: December 31, 2015 2014 Balance at beginning of period $ 71,663 $ 50,815 Additions based on tax positions related to the current year 13,614 20,303 Additions for tax positions of prior years 1,454 545 Balance at end of period $ 86,731 $ 71,663 Included in the balance of unrecognized tax benefits at December 31, 2015 are potential benefits of $86.7 million that, if recognized, would affect the effective tax rate. The Company’s policy for classifying interest and penalties associated with unrecognized income tax benefits is to include such items in the income tax expense. The total amount of accrued interest and penalties was not significant as of December 31, 2015. The Company files income tax returns in the U.S. and various foreign jurisdictions. The U.S. and foreign jurisdictions have statute of limitations ranging from three to five years. However, carryforward tax attributes that were generated in 2012 and earlier may still be adjusted upon examination by tax authorities. Currently, the Company is under audit by the Internal Revenue Service for the year 2012. U.S. income and foreign withholding taxes have not been recognized on the excess of the amount for financial reporting over the tax basis of investments in foreign subsidiaries that are essentially permanent in duration. This excess totaled approximately $1.7 million as of December 31, 2015, which will be indefinitely reinvested; therefore, deferred income taxes of approximately $0.2 million have not been provided on such foreign earnings. |
EQUITY COMPENSATION PLANS
EQUITY COMPENSATION PLANS | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
EQUITY COMPENSATION PLANS | (17) EQUITY COMPENSATION PLANS 2014 Inducement Plan In December 2014, the Board approved the BioMarin Pharmaceutical Inc. 2014 Inducement Plan (the 2014 Inducement Plan), which provides for grants of up to 1.7 million share-based awards to new employees, including grants of restricted stock units (RSUs) and grants of options to purchase common stock at a price equal to the fair market value of such shares on the date of grant. The awards are substantially similar to those granted under the BioMarin Pharmaceutical Inc. 2006 Share Incentive Plan, as amended and restated on March 22, 2010 (as further amended, the 2006 Share Incentive Plan), and the BioMarin Pharmaceutical Inc. 2012 Inducement Plan (the 2012 Inducement Plan). The 2014 Inducement Plan expired in June 2015. Share Incentive Plan The 2006 Share Incentive Plan, which replaced the Company’s previous stock option plans (the 1997 Stock Plan and the 1998 Directors Options Plan), provides for grants of options to employees to purchase common stock at the fair market value of such shares on the grant date, as well as other forms of equity compensation. As of December 31, 2015, awards issued under the 2006 Share Incentive Plan include both stock options and RSUs. Stock option awards granted to employees generally vest over a four-year period on a cliff basis six months after the grant date and then monthly thereafter. The term of the outstanding options is generally ten years. RSUs granted to employees generally vest annually over a straight-line four-year period after the grant date. Restricted stock units granted to directors generally vest in full one year after the grant date. As of December 31, 2015, options to purchase approximately 10.0 million and 0.3 million shares were outstanding under the Share Incentive Plan and the Company’s previous stock option plans, respectively. As of December 31, 2015, an aggregate of approximately 27.7 million unissued shares were authorized for future issuance under the Share Incentive Plan. Employee Stock Purchase Plan Under BioMarin’s ESPP, which was initially approved in June 2006, replacing the Company’s previous plan, and was further amended on March 5, 2014, employees meeting specific employment qualifications are eligible to participate and can purchase shares on established dates (each purchase date) semi-annually through payroll deductions at the lower of 85% of the fair market value of the stock at the commencement of the offering period or each purchase date of the offering period. Each offering period will span up to two-years. The ESPP permits eligible employees to purchase common stock through payroll deductions for up to 10% of qualified compensation, up to an annual limit of $25,000. The ESPP is intended to qualify as an “employee stock purchase plan” under Section 423 of the Internal Revenue Code. During 2015, the Company issued 185,091 shares under the ESPP. As of December 31, 2015 there were approximately 1.0 million shares reserved for future issuance under the ESPP. Board of Director Grants Each Independent Director is automatically granted an initial stock option grant to purchase 10,000 share of common stock and 4,000 RSUs on the date that such person first becomes an Independent Director. The shares of common stock subject to the initial grant vest quarterly over three years and the initial RSU grant vest annually over three years. On the date of the Company’s annual meeting of shareholders, each re-elected director is granted an additional stock option grant to purchase 8,500 shares of common stock and 3,400 RSUs. The shares of common stock subject to the annual option grant vest quarterly over one year and the additional annual RSUs vest in full on the one-year anniversary of the grant date. The additional option grant or RSU grant for a director that has served for less than a year is prorated to the nearest quarter. These options and RSUs continue to vest only while the director serves on the Board. The exercise price per share of each of these options is 100% of the fair market value of a share of the Company’s common stock on the date of the grant. These options have a term of 10 years. Shares Available Under Equity Compensation Plans At December 31, 2015, an aggregate of approximately 30.2 million unissued shares was authorized for future issuance under the Company’s stock plans, which includes shares issuable under the 2006 Share Incentive Plan, the 2014 Inducement Plan, the 2012 Inducement Plan and the ESPP. Under the 2006 Share Incentive Plan awards that expire or are cancelled without delivery of shares generally become available for issuance under the respective plan. Awards that expire or are cancelled under the Company’s suspended 1997 Stock Plan, 1998 Director Option Plan, 2012 Inducement Plan or 2014 Inducement Plan may not be reissued. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
STOCK-BASED COMPENSATION | (18) STOCK-BASED COMPENSATION The following table summarizes activity under the Company’s stock option plans, including the 2012 and 2014 Inducement Plans and those suspended upon the adoption of the 2006 Share Incentive Plan for the year ended December 31, 2015. All option grants presented in the table had exercise prices not less than the fair value of the underlying common stock on the grant date: Shares Weighted Average Exercise Price Weighted Average Remaining Years Aggregate Intrinsic Value (1) Options outstanding as of December 31, 2014 11,477,164 $ 38.11 6.2 $ 600,112 Granted 728,770 $ 116.94 Exercised (1,723,345 ) $ 30.80 Expired and forfeited (159,686 ) $ 63.79 Options outstanding as of December 31, 2015 10,322,903 $ 44.50 5.6 $ 630,949 Options expected to vest at December 31, 2015 1,563,790 $ 62.18 $ 66,579 Exercisable at December 31, 2015 8,102,226 $ 35.62 4.9 $ 561,554 (1) The aggregate intrinsic value for outstanding options is calculated as the difference between the exercise price of the underlying awards and the quoted price of the Company’s common stock as of the last trading day for the respective year. The aggregate intrinsic value of options outstanding and exercisable includes options with an exercise price below $104.76, the closing price of the Company’s common stock on December 31, 2015. The weighted-average fair value per option granted in the years ended December 31, 2015, 2014 and 2013 was $56.76, $30.93 and $30.77, respectively. The total intrinsic value of options exercised during the years ended December 31, 2015, 2014 and 2013 was $146.6 million, $130.1 million and $119.2 million, respectively. The aggregate intrinsic value of options exercised was determined as of the date of option exercise. Upon the exercise of the options, the Company issues new common stock from its authorized shares. There were 9.7 million options that were in-the-money at December 31, 2015. Determining the Fair Value of Stock Options and Stock Purchase Rights The fair value of each option award is estimated on the date of grant using the Black-Scholes valuation model and the assumptions noted in the tables below. The expected life of options is based on observed historical exercise patterns. Groups of employees that have similar historical exercise patterns were considered separately for valuation purposes, and as of December 31, 2015 the Company has identified two groups with distinctly different exercise patterns. The two groups identified are executive and non-executive employees. The executive employee group has a history of holding options for longer periods than non-executive employees. The expected volatility of stock options is based upon the weighted average of the historical volatility of the Company’s common stock and the implied volatility of traded options on the Company’s common stock for fiscal periods in which there is sufficient trading volume in options on the Company’s common stock. The risk-free interest rate is based on the implied yield on a U.S. Treasury zero-coupon issue with a remaining term equal to the expected term of the option. The dividend yield reflects that the Company has not paid any cash dividends since inception and does not intend to pay any cash dividends in the foreseeable future. The assumptions used to estimate the per share fair value of stock options granted under the 2012 Inducement Plan, the 2014 Inducement Plan and the Share Incentive Plan were as follows: Years Ended December 31, 2015 2014 2013 Expected volatility 36 – 45% 44 – 45% 44 – 47% Dividend yield 0.00% 0.00% 0.00% Expected life 6.4 - 8.0 years 6.9 years 6.6 – 6.8 years Risk-free interest rate 1.5 – 2.2% 1.8 – 2.3% 1.0 – 2.4% The Company recorded $41.5 million, $41.1 million and $37.0 million of compensation costs related to current period vesting of stock options for the years ended December 31, 2015, 2014 and 2013, respectively. As of December 31, 2015, the total unrecognized compensation cost related to unvested stock options was $74.2 million. These costs are expected to be recognized over a weighted average period of 2.3 years. The assumptions used to estimate the per share fair value of stock purchase rights granted under the ESPP were as follows: Years Ended December 31, 2015 2014 2013 Expected volatility 36 - 38% 38 - 39% 37% Dividend yield 0.00% 0.00% 0.00% Expected life 6-24 months 6-24 months 6-24 months Risk-free interest rate 0.1 - 0.8% 0.1- 0.5% 0.1- 0.3% The Company recorded $7.1 million, $4.8 million and $3.6 million of compensation costs related to options granted under the ESPP for the years ended December 31, 2015, 2014 and 2013, respectively. As of December 31, 2015, there was $9.8 million of total unrecognized compensation cost related to unvested stock options issuable under the ESPP. These costs are expected to be recognized over a weighted average period of 1.3 years. Restricted Stock Unit Awards with Service-Based Vesting Conditions RSUs are generally subject to forfeiture if employment terminates prior to the release of vesting restrictions. The Company expenses the cost of the RSUs, which is determined to be the fair market value of the shares of common stock underlying the RSUs at the date of grant, ratably over the period during which the vesting restrictions lapse. A summary of non-vested RSU activity under the plan for the year ended December 31, 2015 as follows: Shares Weighted Average Grant Date Fair Value Weighted Average Remaining Years Aggregate Intrinsic Value Non-vested units as of December 31, 2014 1,540,703 $ 59.46 2.9 $ 139,280 Granted 1,234,650 $ 119.86 Vested (489,301 ) $ 54.48 Forfeited (138,843 ) $ 81.67 Non-vested units as of December 31, 2015 2,147,209 $ 93.89 2.8 $ 224,942 Non-vested units expected to vest at December 31, 2015 1,895,918 $ 92.56 $ 199,917 The weighted-average grant date fair value per share of RSUs granted during the years ended December 31, 2015, 2014 and 2013, was $119.86, $64.37 and $66.81, respectively. The total intrinsic value of restricted stock that vested and was released in the years ended December 31, 2015, 2014 and 2013 was $59.5 million, $22.9 million and $19.7 million, respectively. The Company recorded $47.9 million, $21.3 million and $13.0 million of compensation costs related to RSUs with service-based vesting conditions for the years ended December 31, 2015, 2014 and 2013, respectively. As of December 31, 2015, there was $143.2 million of total unrecognized compensation cost related to unvested RSUs with service-based vesting conditions. These costs are expected to be recognized over a weighted average period of 2.8 years. Restricted Stock Unit Awards with Performance and Market-Based Vesting Conditions Pursuant to the approval of the Board the Company granted RSU awards with performance and market-based vesting conditions to certain executive officers that provide for a base award of 860,000 RSUs in total (Base RSUs) that may be adjusted to 75% to 125% depending on the performance of the Company’s stock as discussed further below. A summary of non-vested Base RSU activity under the plans for the year ended December 31, 2015 is as follows: Base Awards Weighted Average Grant Date Fair Value Weighted Average Remaining Years Aggregate Intrinsic Value Non-vested units with performance and market vesting conditions as of December 31, 2014 860,000 $ 34.66 1.2 $ 77,744 Granted — Vested — Forfeited — Non-vested units with performance and market vesting conditions as of December 31, 2015 860,000 $ 34.66 0.2 $ 90,094 The number of RSUs that could potentially vest from the Base RSUs granted is contingent upon achievement of specific performance goals and will be multiplied by the Total Shareholder Return (the TSR) multiplier which could range from 75% to 125% to determine the number of earned RSUs. The TSR multiplier is determined based on the Company’s TSR percentile ranking relative to the TSR of the NASDAQ Biotechnology Index on December 31, 2015. TSR is calculated based on the 20-trading day average prices before the beginning and end of the performance period of the Company’s common stock and each comparator company in the NASDAQ Biotechnology Index. The measurement period for the performance and TSR conditions is from the grant date through December 31, 2015 (the Performance Period), subject to certain change of control provisions. The following table details the contingent performance awards, which ones were achieved and the number of RSUs earned based on the final TSR multiplier of 124% at December 31, 2015. Strategic Performance Goals Percentage of Base RSUs to Vest Upon Achievement of Goal Base Number of RSUs Granted Before TSR Multiplier Performance Goal Attained Number of RSUs Earned After TSR Multiplier 1.24 Product Goals Approval of Vimizim in the U.S. or EU prior to December 31, 2015 35 % 301,000 Yes 373,240 Approval of pegvaliase (PEG PAL) or any other non-Vimizim product in the U.S. or EU prior to December 31, 2015 25 % 215,000 No — Financial Goal Total revenues of at least $775.0 million in fiscal 2015 40 % 344,000 Yes 426,560 860,000 799,800 Stock-based compensation expense for this award was recognized over the remaining service period beginning in the period the Company determines the strategic performance goal or goals was probable of achievement. During 2014, management concluded that the revenue performance goal was probable and began recognizing compensation expense related to the performance awards allocated to the revenue performance goal. During 2013, management concluded that regulatory approval of Vimizim was probable and began recognizing compensation expense related to the performance based RSUs allocated to the Vimizim performance goal. For the years ended December 31, 2015, 2014 and 2013, the Company recorded $5.8 million, $12.9 million and $6.5 million, respectively, of compensation expense related to performance awards. As of December 31, 2015, there was $0.3 million of total unrecognized compensation cost related to the unvested awards allocated to the Vimizim and revenue performance goals. These costs are expected to be recognized over a weighted average period of 0.2 years. Restricted Stock Unit Awards with Performance Conditions On March 3, 2015, pursuant to Board approval, the Company granted 58,300 RSU awards with performance-vesting conditions (the 2015 Base RSUs) under the Share Incentive Plan to certain executive officers. The vesting of the 2015 Base RSUs under this specific grant is contingent upon the achievement of a 2015 revenue target and a three-year service period. The number of RSUs that will be awarded from the 2015 Base RSUs upon achievement of the performance condition will be calculated by multiplying the 2015 Base RSUs by a revenue multiplier (determined based on the Company’s performance against the revenue target) which could range between 80% to 120%. Based on the Company’s performance against the revenue target, the Company applied a multiplier of 111% and will issue 64,713 shares. Stock-based compensation for these awards will be recognized over the service period beginning in the period the Company determines it is probable that the revenue target will be achieved. The cost of the 2015 Base RSUs was determined to be $108.36 per RSU, based on the fair value of the common stock underlying the 2015 Base RSUs on the grant date. Accordingly, because the Company’s management determined that attainment of the revenue target is probable, the Company recognized $1.8 million of compensation expense related to these awards during the year ended December 31, 2015. As December 31, 2015, there was $5.0 million of total unrecognized compensation related to the unvested awards. These costs are expected to be recognized over a weighted average period of 2.2 years. Compensation expense included in the Company’s Consolidated Statements of Operations for all stock-based compensation arrangements was as follows: Years Ended December 31, 2015 2014 2013 Cost of sales $ 6,836 $ 6,076 $ 4,860 Research and development 49,399 33,835 27,763 Selling, general and administrative 55,290 46,499 31,753 Total stock-based compensation expense $ 111,525 $ 86,410 $ 64,376 Stock-based compensation of $11.1 million, $8.2 million and $6.1 million was capitalized into inventory, for the years ended December 31, 2015, 2014 and 2013, respectively. Capitalized stock-based compensation is recognized as cost of sales when the related product is sold. |
COMPREHENSIVE INCOME
COMPREHENSIVE INCOME | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
COMPREHENSIVE INCOME | (19) COMPREHENSIVE INCOME The following table summarizes amounts reclassified out of Accumulated Other Comprehensive Income/(Loss) (AOCI) and their effect on the Company’s Consolidated Statements of Operations for the years ended December 31, 2015 and 2014. Amount Reclassified from AOCI (Gain) Loss Years Ended December 31, Consolidated Statement of Details about AOCI Components 2015 2014 Operations Classification Gains on cash flow hedges: Forward foreign currency exchange contracts $ 17,715 $ 1,008 Net product revenues Forward foreign currency exchange contracts 1,889 — Selling, general and administrative Other-than-temporary impairment on available-for-sale securities (1,160 ) — Other income (expense) Gain on sale of available-for-sale investment 3,033 — Other income (expense) Less income tax effect of the above 681 365 Provision for (benefit from) income taxes $ 20,796 $ 643 Net loss The following table summarizes changes in the accumulated balances for each component, of other comprehensive income/(loss), including current period other comprehensive income and reclassifications out of AOCI, for the years ended December 31, 2015 and 2014. Year Ended December 31, 2015 Gains and Losses on Cash Flow Hedges Unrealized Gains on Available-for-Sale Securities Foreign Currency Items Total AOCI balance at December 31, 2014 15,906 11,511 49 27,466 Other comprehensive income (loss) before reclassifications 17,300 (2,878 ) (59 ) 14,363 Less gain (loss) reclassified from AOCI 19,604 1,192 — 20,796 Net current-period other comprehensive income (loss) (2,304 ) (4,070 ) (59 ) (6,433 ) AOCI balance at December 31, 2015 13,602 7,441 (10 ) 21,033 Year Ended December 31, 2014 Gains and Losses on Cash Flow Hedges Unrealized Gains on Available-for-Sale Securities Foreign Currency Items Total AOCI balance at December 31, 2013 (1,529 ) 6,423 124 5,018 Other comprehensive income (loss) before reclassifications 18,078 5,088 (75 ) 23,091 Less gain (loss) reclassified from AOCI 643 — — 643 Net current-period other comprehensive income (loss) 17,435 5,088 (75 ) 22,448 AOCI balance at December 31, 2014 15,906 11,511 49 27,466 |
REVENUE AND CREDIT CONCENTRATIO
REVENUE AND CREDIT CONCENTRATIONS | 12 Months Ended |
Dec. 31, 2015 | |
Risks And Uncertainties [Abstract] | |
REVENUE AND CREDIT CONCENTRATIONS | (20) REVENUE AND CREDIT CONCENTRATIONS Net Product Revenue— The Company considers there to be revenue concentration risks for regions where net product revenues exceeds ten percent (10%) of consolidated net product revenues. The concentration of the Company’s net product revenues within the regions below may have a material adverse effect on the Company’s net product revenue and results of operations if sales in the respective regions experience difficulties. The table below summarizes consolidated net product revenues concentrations based on patient location for Vimizim, Naglazyme, Kuvan and Firdapse which are sold directly by the Company and global sales of Aldurazyme which is marketed by Genzyme. Genzyme is the Company’s sole customer for Aldurazyme and is responsible for marketing and selling Aldurazyme to third-parties. Net product revenues from Genzyme consists of royalties on worldwide net Aldurazyme sales and incremental product transfer revenues. Years Ended December 31, 2015 2014 2013 Region: United States 39 % 37 % 36 % Europe 20 % 20 % 22 % Latin America 16 % 16 % 14 % Rest of world 14 % 13 % 13 % Total net product revenues marketed by the Company 89 % 86 % 85 % Aldurazyme net product revenues marketed by Genzyme 11 % 14 % 15 % Total net product revenue 100 % 100 % 100 % The following table illustrates the percentage of the consolidated net product revenues attributable to the Company’s four largest customers. For the Years Ended December 31, 2015 2014 2013 Customer A 15 % 15 % 15 % Customer B (1) 11 % 14 % 16 % Customer C 10 % 12 % 9 % Customer D 13 % 11 % 11 % Total 49 % 52 % 51 % (1) Genzyme is the Company’s sole customer for Aldurazyme and is responsible for marketing and selling Aldurazyme to third-parties. Net product revenues from Genzyme consists of royalties on worldwide net Aldurazyme sales and incremental product transfer revenue. On a consolidated basis, the Company’s two largest customers accounted for 37% and 18% of the December 31, 2015 accounts receivable balance, respectively, compared to December 31, 2014 when the two largest customers accounted for 42% and 18% of the accounts receivable balance, respectively. As of December 31, 2015 and 2014, accounts receivable for the Company’s largest customer balance included $36.1 million and $34.5 million, respectively, of unbilled accounts receivable related to net incremental Aldurazyme product transfers to Genzyme. The Company does not require collateral from its customers, but does perform periodic credit evaluations of its customers’ financial condition and requires immediate payment in certain circumstances. The Company is subject to credit risk from accounts receivable related to product sales. The majority of the Company’s trade accounts receivable arises from product sales in the U.S. and the European Union (the EU). The Company’s product sales to government-owned or government-funded customers in certain European countries, including Italy, Spain, Portugal, Greece and Russia, are subject to payment terms that are statutorily determined. Because these customers are government-owned or government-funded, the Company may be impacted by declines in sovereign credit ratings or sovereign defaults in these countries. A significant or further decline in sovereign credit ratings or a default in these countries may decrease the likelihood that the Company will collect accounts receivable or may increase the discount rates and the length of time until receivables are collected, which could result in a negative impact to the Company’s operating results. In the year ended December 31, 2015 the Company’s net product revenues for these countries was 5%. Additionally, approximately 9% of the Company’s outstanding accounts receivable at December 31, 2015 related to such countries. As of December 31, 2015, the Company’s accounts receivable in certain European countries, specifically Greece, Italy, Portugal, Spain and Russia, totaled approximately $14.5 million, of which $0.5 million were greater than 90 days past due. The Company also sells its products in other countries that face economic crises and local currency devaluation. Although the Company has historically collected receivables from customers in those countries, sustained weakness or further deterioration of the local economies and currencies may cause customers in those countries to be unable to pay for the Company’s products. The Company has not historically experienced a significant level of uncollected receivables and has received continued payments from its more aged accounts. The Company believes that the allowances for doubtful accounts related to these countries is adequate based on its analysis of the specific business circumstances and expectations of collection for each of the underlying accounts in these countries. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | (21) SEGMENT INFORMATION The Company operates in one business segment, which primarily focuses on the development and commercialization of innovative biopharmaceuticals for serious diseases and medical conditions. All products are included in one segment because the majority of the Company’s products have similar economic and other characteristics, including the nature of the products and production processes, type of customers, distribution methods and regulatory environment. Years Ended December 31, 2015 2014 2013 Net product revenues by product: Vimizim $ 228,147 $ 77,319 $ 85 Naglazyme 303,090 334,447 271,244 Kuvan 239,336 202,987 167,422 Aldurazyme 97,912 105,616 83,545 Firdapse 16,037 18,047 16,064 Total net product revenues $ 884,522 $ 738,416 $ 538,360 The following table summarizes total revenues from external customers and collaborative partners by geographic region. Net product revenues are based on patient location for Vimizim, Naglazyme, Kuvan and Firdapse and Genzyme’s headquarters for Aldurazyme. Although Genzyme sells Aldurazyme worldwide, the royalties earned by the Company on Genzyme’s net sales are included in the U.S. region, as the transactions are with Genzyme whose headquarters are located in the U.S. Years Ended December 31, 2015 2014 2013 Total revenues by geographic region: United States $ 444,075 $ 378,288 $ 284,303 Europe 178,746 139,940 115,729 Latin America 142,305 118,562 67,339 Rest of world 124,769 112,494 81,114 Total revenues $ 889,895 $ 749,284 $ 548,485 The following table summarizes non-monetary long-lived assets by geographic region. Non-monetary long-lived assets primarily consists of property, plant and equipment, intangible assets, goodwill and deferred tax assets. December 31, 2015 2014 Long-lived assets by geography: United States $ 940,512 $ 827,884 Europe 865,233 102,451 Rest of world 2,253 1,630 Total long-lived assets $ 1,807,998 $ 931,965 |
COLLABORATIVE AGREEMENTS
COLLABORATIVE AGREEMENTS | 12 Months Ended |
Dec. 31, 2015 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
COLLABORATIVE AGREEMENTS | (22) COLLABORATIVE AGREEMENTS Merck Serono In May 2005, the Company entered into an agreement with Merck Serono for the further development and commercialization of 6R-BH4, both in Kuvan for PKU and for other indications, and pegvaliase (phenylalanine ammonia lyase, formerly referred to as PEG PAL). Through the agreement and subsequent amendment, Merck Serono acquired exclusive rights to market these products in all territories outside the U.S., Canada and Japan, and the Company retained exclusive rights to market these products in the U.S. and Canada. Merck Serono had the right to collaborate on the development of Kuvan and pegvaliase if it “opted-in”, which it did not do for pegvaliase. The Company and Merck Serono were individually responsible for the costs of commercializing the products within their respective territories through December 31, 2015. Merck Serono will also pay the Company royalties on its net sales of these products. As of December 31, 2015 and 2014, amounts due from Merck Serono for reimbursable development costs for Kuvan totaled $0.2 million and $0.2 million, respectively. As previously reported, on October 1, 2015 the Company entered into a Termination and Transition Agreement with Ares Trading S.A. (Merck Serono), as amended and restated on December 23, 2015 (the A&R Kuvan Agreement), to terminate the Development, License and Commercialization Agreement, dated May 13, 2005, as amended (the License Agreement), between the Company and Merck Serono, including the license granted in the License Agreement to Merck Serono related to Kuvan, which became effective on January 1, 2016. Also on October 1, 2015, the Company and Merck Serono entered into a Termination Agreement (the Pegvaliase Agreement) to terminate the license granted in the License Agreement from to Merck Serono related to pegvaliase, which also became effective on January 1, 2016. As of January 1, 2016, the Company and Merck Serono have no further rights or obligations under the License Agreement with respect to pegvaliase. The License Agreement will continue in effect in order to complete the transfer of certain assets related to Kuvan on a country-by-country basis. See Note 25 to these Consolidated Financial Statements for additional discussion. Other Agreements The Company is engaged in R&D collaborations with various other entities. These provide for sponsorship of R&D by the Company and may also provide for exclusive royalty-bearing intellectual property licenses or rights of first negotiation regarding licenses to intellectual property development under the collaborations. Typically, these agreements can be terminated for cause by either party upon 90 days written notice. In September 2007, the Company licensed to Asubio Pharma Co., Ltd. (a subsidiary of Daiichi Sankyo) exclusive rights to data and intellectual property contained in the Kuvan new drug application. The Company receives royalties on net sales of the product in Japan. In October 2012, the Company licensed to Catalyst Pharmaceutical Partners, Inc., (Catalyst) the North American rights to develop and market Firdapse. In consideration of this licensing arrangement, the Company received from Catalyst a $5.0 million convertible promissory note. Under the terms of the note agreement, the Company received 6.7 million shares of Catalyst common stock upon the automatic conversion of the convertible promissory note on December 10, 2012. In exchange for the North American rights to Firdapse the Company may receive royalties of 7% to 10% on net product sales of Firdapse in North America. As of December 31, 2015 and 2014, amounts due from Catalyst for reimbursable development costs totaled $0.1 million and $0.1 million, respectively. |
COMPENSATION AGREEMENTS AND PLA
COMPENSATION AGREEMENTS AND PLANS | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
COMPENSATION AGREEMENTS AND PLANS | (23) COMPENSATION AGREEMENTS AND PLANS Employment Agreements The Company has entered into employment agreements with certain officers. Generally, these agreements can be terminated without cause by the Company upon prior written notice and payment of specified severance, or by the officer upon four weeks’ prior written notice to the Company. 401(k) Plan The Company sponsors the BioMarin Retirement Savings Plan (the 401(k) Plan). Most employees (Participants) are eligible to participate following the start of their employment, at the beginning of each calendar month. Participants may contribute to the 401(k) Plan up to the lesser of 100% of their current compensation or an amount up to a statutorily prescribed annual limit. The Company pays the direct expenses of the 401(k) Plan and matched 100% of each Participant’s contributions, up to a maximum of the lesser of 3% of the employee’s annual compensation or $6,000 per year through December 31, 2013. The Company’s matching contribution vests over four years from employment commencement and was approximately $15.1 million, $8.3 million and $3.4 million for the years ended December 31, 2015, 2014 and 2013, respectively. Employer contributions not vested upon employee termination are forfeited. Deferred Compensation Plan In December 2005, the Company adopted the Deferred Compensation Plan. The Deferred Compensation Plan allows eligible employees, including members of the Board, management and certain highly-compensated employees as designated by the Deferred Compensation Plan’s Administrative Committee, the opportunity to make voluntary deferrals of compensation to specified future dates, retirement or death. Participants are permitted to defer portions of their salary, annual cash bonus and restricted stock. The Company may not make additional direct contributions to the Deferred Compensation Plan on behalf of the participants, without further action by the Board. Deferred compensation is held in trust and generally invested to match the investment benchmarks selected by participants. The recorded cost of any investments will approximate fair value. Company stock issued into the Deferred Compensation Plan is recorded and accounted for similarly to treasury stock in that the value of the employer stock is determined on the date the restricted stock vests and the shares are issued into the Deferred Compensation Plan. The Company stock issued into the Deferred Compensation Plan upon vesting is recorded in stockholders’ equity. As of December 31, 2015 and 2014, the fair value of Company stock held by the Deferred Compensation Plan, was $25.5 million and $20.2 million, respectively, which is included in current and non-current liabilities. The change in market value amounted to a loss of $2.5 million in 2015, compared to losses of $4.8 million and $4.2 million in 2014 and 2013, respectively. See Note 13 to these Consolidated Financial Statements for additional discussion regarding the fair value of the Deferred Compensation Plan assets and liabilities. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2015 | |
Commitments And Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | (24) COMMITMENTS AND CONTINGENCIES Lease Commitments The Company leases office space and research, testing and manufacturing laboratory space in various facilities under operating agreements expiring at various dates through 2025. Certain of the leases provide for options by the Company to extend the lease for multiple five-year renewal periods and also provide for annual minimum increases in rent, usually based on a consumer price index or annual minimum increases. Minimum lease payments for future years are as follows: 2016 $ 7,209 2017 6,527 2018 5,444 2019 2,990 2020 2,352 Thereafter 9,953 Total $ 34,475 Rent expense for the years ended December 31, 2015, 2014 and 2013 was $9.3 million, $7.9 million and $10.4 million, respectively. Deferred rent accruals at December 31, 2015 totaled $1.7 million, of which $1.2 million was current. Deferred rent accruals at December 31, 2014 totaled $1.3 million, of which $0.7 million was current. See Note 5 to these Consolidated Financial Statements for additional discussion regarding the purchase of SRCC. Research and Development Funding and Technology Licenses The Company uses experts and laboratories at universities and other institutions to perform certain R&D activities. These amounts are included as R&D expense as services are provided. The Company has also licensed technology, for which it is required to pay royalties upon future sales, subject to certain annual minimums. Other Commitments In the normal course of business, the Company enters into various firm purchase commitments primarily related to active pharmaceutical ingredients and certain inventory related items. As of December 31, 2015, these commitments for the next five years were approximately $51.0 million. The amounts primarily related to active pharmaceutical ingredients represent minimum purchase requirements and post marketing commitments related to the Company’s approved products Contingencies From time to time the Company is involved in legal actions arising in the normal course of its business. The most significant of these actions are described below. The process of resolving matters through litigation or other means is inherently uncertain and it is possible that an unfavorable resolution of these matters could adversely affect the Company, its results of operations, financial condition and cash flows. The Company’s general practice is to expense legal fees as services are rendered in connection with legal matters, and to accrue for liabilities when losses are probable and reasonably estimable. Paragraph IV Notice s The Company received a paragraph IV notice letter, dated January 22, 2015, from Par Pharmaceutical, Inc. (Par), notifying it that Par had filed an ANDA seeking approval of a proposed generic version of Kuvan (sapropterin dihydrochloride) 100 mg oral tablets prior to the expiration of the Company’s patents listed in the FDA’s Approved Drug Products with Therapeutic Equivalence Evaluations (the Orange Book). Together with Merck & Cie, on March 6, 2015, the Company filed a lawsuit against Par in the U.S. District Court for the District of New Jersey alleging infringement of its patents relating to Kuvan tablets and seeking an injunction to prevent Par from introducing a generic version of Kuvan tablets that would infringe its patents prior to their expiration. The filing of that lawsuit triggered the automatic 30-month stay on the approval of Par’s ANDA in accordance with the Hatch-Waxman Act, which expires in July 2017. In response, Par alleged, inter alia The parties submitted opening claim construction briefs on January 14, 2016, and responsive claim construction briefs are due on March 4, 2016. The Court has not yet set a date for trial in this litigation. The Company also received a paragraph IV notice letter, dated January 14, 2016, from Par, notifying us that Par has filed a separate ANDA seeking approval of a proposed generic version of Kuvan 100 mg oral powder prior to the expiration of the Company’s patents listed in the FDA's Orange Book. On February 22, 2016, the Company filed a lawsuit against Par in the U.S. District Court for the District of New Jersey alleging infringement of its patents relating to Kuvan powder and seeking an injunction to prevent Par from introducing a generic version of Kuvan powder that would infringe its patents prior to their expiration. The filing of that lawsuit triggered the automatic 30-month stay on the approval of Par’s ANDA in accordance with the Hatch-Waxman Act, which expires in July 2018. Contingent Payments As of December 31, 2015 the Company is also subject to contingent payments totaling approximately $675.4 million upon achievement of certain regulatory and licensing milestones if they occur before certain dates in the future. Of this amount, $80.0 million relates to Prosensa and $22.7 million relates to programs that are no longer being developed. As of December 31, 2015, the Company has recorded $85.6 million of contingent acquisition consideration payable on its Consolidated Balance Sheet, of which $52.9 million is expected to be paid in the next twelve months. |
SUBSEQUENT EVENT
SUBSEQUENT EVENT | 12 Months Ended |
Dec. 31, 2015 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENT | (25) SUBSEQUENT EVENT On January 1, 2016, the Company acquired all global rights to Kuvan and pegvaliase from Ares Trading, S.A. (Merck Serono), with the exception of Kuvan in Japan, in exchange for an upfront payment of $371.8 million and up to and additional €185.0 million if certain sales and regulatory milestones are attained. Previously, the Company had exclusive rights to Kuvan in the U.S. and Canada and pegvaliase in the U.S. and Japan. Under the terms of the agreement, the Company acquired exclusive worldwide rights to Kuvan and pegvaliase with the exception of Kuvan in Japan. |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Significant Accounting Policies [Line Items] | |
Basis of Presentation | Basis of Presentation These Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States (U.S. GAAP) and include the accounts of BioMarin and its wholly owned subsidiaries. All significant intercompany transactions have been eliminated. Management performed an evaluation of the Company’s activities through the date of filing of this Annual Report on Form 10-K, and has concluded that there are no subsequent events except for the transactions disclosed in Note 25 to these Consolidated Financial Statements. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make judgments, estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the dates of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Cash And Cash Equivalents | Cash and Cash Equivalents The Company treats liquid investments with original maturities of three months or less when purchased as cash and cash equivalents. |
Investments | Investments The Company determines the appropriate classification of its investments in debt and equity securities at the time of purchase and reevaluates such designations at each balance sheet date. All of the Company’s securities are classified as available-for-sale and reported in short-term investments, other assets or long-term investments. Available-for-sale investments are recorded at fair market value, with unrealized gains or losses included in Accumulated Other Comprehensive Income on the Company’s Consolidated Balance Sheets, exclusive of other-than-temporary impairment losses, if any. Investments consist of corporate securities, commercial paper, U.S. federal government agency securities and certificates of deposit. |
Inventory | Inventory The Company values inventory at the lower of cost or net realizable value and determines the cost of inventory using the average-cost method. Inventories consist of currently marketed products and may contain certain products awaiting regulatory approval. In evaluating the recoverability of inventories produced in preparation for product launches, the Company considers the likelihood that revenue will be obtained from the future sale of the related inventory together with the status of the product within the regulatory approval process. The Company analyzes its inventory levels quarterly and writes down inventory that has become obsolete, or has a cost basis in excess of its expected net realizable value and inventory quantities in excess of expected requirements. Expired inventory is disposed of and the related costs are recognized as Cost of Sales in the Company’s Consolidated Statements of Operations. |
Property, Plant And Equipment | Property, Plant and Equipment Property, plant and equipment are stated at cost net of accumulated depreciation. Depreciation is computed using the straight-line method over the related estimated useful lives as presented in the table below. Significant additions and improvements are capitalized, while repairs and maintenance are charged to expense as incurred. Property and equipment purchased for specific research and development (R&D) projects with no alternative uses are expensed as incurred. Leasehold improvements Shorter of life of asset or lease term Building and improvements 20 to 50 years Manufacturing and laboratory equipment 5 to 15 years Computer hardware and software 3 to 8 years Office furniture and equipment 5 years Vehicles 5 years Land improvements 10 years Land Not applicable Construction-in-progress Not applicable Certain of the Company’s operating lease agreements include scheduled rent escalations over the lease term, as well as tenant improvement allowances. Scheduled increases in rent expense are recognized on a straight-line basis over the lease term. The difference between rent expense and rent paid is recorded as deferred rent and included in other liabilities in the accompanying Consolidated Balance Sheets. The tenant improvement allowances and free rent periods are recognized as a reduction of rent expense over the lease term on a straight-line basis. |
Impairment Of Long-Lived Assets | Impairment of Long-Lived Assets The Company records goodwill in a business combination when the total consideration exceeds the fair value of the net tangible and identifiable intangible assets acquired. Goodwill and intangible assets with indefinite lives are not amortized but subject to an annual impairment analysis. Intangible assets with finite lives are amortized over their estimated useful lives on a straight-line basis. The Company performs its annual impairment review of goodwill and indefinite lived intangibles during the fourth quarter and whenever events or circumstances indicate that the carrying amount of an asset may not be recoverable. If it is determined that the full carrying amount of an asset is not recoverable, an impairment loss is recorded in the amount by which the carrying amount of the asset exceeds its fair value. The Company currently operates in one business segment, the biopharmaceutical development and commercialization segment. When reviewing goodwill for impairment, the Company assesses whether goodwill should be allocated to operating levels lower than its single operating segment for which discrete financial information is available and reviewed for decision making purposes. These lower levels are referred to as reporting units. As of December 31, 2015, the Company has only one reporting unit. The Company tests finite-lived intangible assets for impairment when facts or circumstances suggest that the carrying value of the asset may not be recoverable. If the carrying value exceeds the projected undiscounted pre-tax cash flows of the intangible asset, an impairment loss equal to the excess of the carrying value over the estimated fair value (discounted after-tax cash flows) is recognized. The recoverability of the carrying value of the Company’s buildings, leasehold improvements for its facilities and equipment depends on the successful execution of the Company’s business initiatives and its ability to earn sufficient returns on approved products and product candidates. The Company continually monitors events and changes in circumstances that could indicate carrying amounts of its fixed assets may not be recoverable. When such events or changes in circumstances occur, the Company assesses recoverability by determining whether the carrying value of such assets will be recovered through the undiscounted expected future cash flows. If the future undiscounted cash flows are less than the carrying amount of these assets, the Company recognizes an impairment loss based on the excess of the carrying amount over the fair value of the assets. |
Revenue Recognition | Revenue Recognition The Company recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred, the price to the buyer is fixed or determinable and collection from the customer is reasonably assured. Net Product Revenues —The Company recognizes revenues from product sales when title and risk of loss have passed to the customer, which typically occurs upon delivery. Product sales transactions are evidenced by customer purchase orders, customer contracts, invoices and/or the related shipping documents. Upon recognition of revenue from product sales, provisions are made for government rebates such as Medicaid reimbursements, customer incentives such as cash discounts for prompt payment, distributor fees and expected returns of expired products, as appropriate. Amounts collected from customers and remitted to governmental authorities, which primarily consists of value-added taxes related to product sales in foreign jurisdictions, are presented on a net basis in the Company’s Consolidated Statements of Operations, in that taxes billed to customers are not included as a component of net product revenues. In the U.S., the Company’s commercial products are generally sold to specialty pharmacies or end-users, such as hospitals, which act as retailers. Through December 31, 2015, the Company also sold Kuvan to Ares Trading S.A. (Merck Serono) at a price near its manufacturing cost, and Merck Serono resold the product to end users outside the U.S., Canada and Japan. The royalty earned from Kuvan product sold by Merck Serono in the EU was included as a component of net product revenues in the period earned. Outside the U.S., the Company’s commercial products are sold to its authorized distributors or directly to government purchasers or hospitals, which act as the end-users. The Company receives a 39.5% to 50% royalty on worldwide net Aldurazyme sales by Genzyme depending on sales volume, which is included in Net Product Revenues in the Company’s Consolidated Statements of Operations. The Company recognizes a portion of this amount as product transfer revenue when product is released to Genzyme because all of the Company’s performance obligations are fulfilled at that point and title to, and risk of loss for, the product has transferred to Genzyme. The product transfer revenue represents the fixed amount per unit of Aldurazyme that Genzyme is required to pay the Company if the product is unsold by Genzyme. The amount of product transfer revenue will eventually be deducted from the calculated royalty earned when the product is sold by Genzyme. The Company records the Aldurazyme royalty revenue based on net sales information provided by Genzyme and records product transfer revenue based on the fulfillment of Genzyme purchase orders in accordance with the terms of the related agreements with Genzyme and when the title and risk of loss for the product is transferred to Genzyme. The Company records reserves for rebates payable under Medicaid and other government programs as a reduction of revenue at the time product revenues are recorded. The Company’s reserve calculations require estimates, including estimates of customer mix, to determine which sales will be subject to rebates and the amount of such rebates. The Company updates its estimates and assumptions each quarter and records any necessary adjustments to its reserves. The Company records fees paid to distributors as a reduction of revenue. The Company records allowances for product returns, if appropriate, as a reduction of revenue at the time product sales are recorded. Several factors are considered in determining whether an allowance for product returns is required, including market exclusivity of the products based on their orphan drug status, the patient population, the customers’ limited return rights and the Company’s experience with returns. Because of the pricing of the Company’s commercial products, the limited number of patients and the customers’ limited return rights, most customers and retailers carry a limited inventory. However, certain international customers, usually government entities, tend to purchase larger quantities of product less frequently. Although such buying patterns may result in revenue fluctuations from quarter to quarter, the Company has not experienced any increased product returns or risk of product returns. The Company relies on historical return rates to estimate returns. Genzyme’s contractual return rights for Aldurazyme are limited to defective product. Based on these factors and the fact that the Company has not experienced significant product returns to date, management has concluded that product returns will be minimal. In the future, if any of these factors and/or the history of product returns change, an allowance for product returns may be required. Collaborative Agreement Revenues —Collaborative agreement revenues include both license revenue and contract research revenue. Activities under collaborative agreements are evaluated to determine if they represent a multiple element revenue arrangement. The Company identifies the deliverables included within the agreement and evaluates which deliverables represent separate units of accounting. The Company accounts for those components as separate units of accounting if the following two criteria are met: · The delivered item or items have value to the customer on a stand-alone basis; and · If there is a general right of return relative to the delivered items, delivery or performance of the undelivered items is considered probable and within the Company’s control. Factors considered in this determination include, among other things, whether any other vendors sell the items separately and if the licensee could use the delivered item for its intended purpose without the receipt of the remaining deliverables. If multiple deliverables included in an arrangement are separable into different units of accounting, the Company allocates the arrangement consideration to those units of accounting. The amount of allocable arrangement consideration is limited to amounts that are fixed or determinable. Arrangement consideration is allocated at the inception of the arrangement to the identified units of accounting based on their relative estimated selling price. Revenue is recognized for each unit of accounting when the appropriate revenue recognition criteria are met. Nonrefundable up-front license fees where the Company has continuing involvement through R&D collaboration are initially deferred and recognized as collaborative agreement license revenue over the estimated period for which the Company continues to have a performance obligation. Future milestone payments that are contingent upon the achievement of a substantive milestone are recognized in their entirety in the period in which the milestone is achieved. A milestone is substantive if: · It can only be achieved based in whole or in part on either the Company’s performance or on the occurrence of a specific outcome resulting from the Company’s performance; · There is substantive uncertainty at the date an arrangement is entered into that the event will be achieved; and · It would result in additional payments being due to the entity. Royalty, License and Other Revenues —Royalty revenues includes royalties on net sales of products with which the Company has no direct involvement and is recognized based on data reported by licensees or sublicensees and rental income associated with the tenants in the SRCC, which is recognized on a straight-line basis over the term of the respective lease. Royalties are recognized as earned in accordance with the contract terms at the time the royalty amount is fixed or determinable based on information received from the sublicensees and at the time collectibility is reasonably assured. Due to the significant role the Company plays in the operations (primarily the manufacturing and regulatory activities) of Aldurazyme and Kuvan as well as the rights and responsibilities to deliver the products to Genzyme and Merck Serono, respectively, the Company elected not to classify these royalties earned as royalty, license and other revenues but instead to include them as a component of Net Product Revenues in the Company’s Consolidated Statements of Operations. |
Research and Development | Research and Development R&D expenses include expenses associated with contract research and development provided by third parties, most product manufacturing prior to regulatory approval, clinical and regulatory costs, and internal R&D costs. In instances where the Company enters into agreements with third parties for R&D activities, costs are expensed upon the earlier of when non-refundable amounts are due or as services are performed unless there is an alternative future use of the funds in other R&D projects. Amounts due under such arrangements may be either fixed fee or fee for service and may include upfront payments, monthly payments and payments upon the completion of milestones or receipt of deliverables. The Company accrues costs for clinical trial activities based upon the services received and estimates of related expenses incurred that have yet to be invoiced by the vendors that perform the activities. |
Convertible Debt Transactions | Convertible Debt Transactions The Company separately accounts for the liability and equity components of convertible debt instruments that can be settled in cash by allocating the proceeds from issuance between the liability component and the embedded conversion option, or equity component, in accordance with accounting for convertible debt instruments that may be settled in cash (including partial cash settlement) upon conversion. The value of the equity component is calculated by first measuring the fair value of the liability component, using the interest rate of a similar liability that does not have a conversion feature, as of the issuance date. The difference between the proceeds from the convertible debt issuance and the amount measured as the liability component is recorded as the equity component with a corresponding discount recorded on the debt. The Company recognizes the accretion of the resulting discount using the effective interest method as part of Interest Expense in its Consolidated Statements of Operations. |
Net Loss Per Common Share | Net Loss Per Common Share Basic net loss per share is calculated by dividing net loss by the weighted average shares of common stock outstanding during the period. Diluted net loss per share reflects the potential dilution that would occur if securities or other contracts to issue common stock were exercised or converted into common stock; however, potential common equivalent shares are excluded if their effect is anti-dilutive. The Company currently has no dilutive securities due to the net loss position and as such, basic and diluted net loss per share are the same for the periods presented. |
Stock-Based Compensation | Stock-Based Compensation The Company uses the Black-Scholes option-pricing model to determine the fair value of stock options and the Company’s ESPP awards. The determination of the fair value of stock-based payment awards using an option-pricing model is affected by the Company’s stock price as well as assumptions regarding a number of complex and subjective variables. Stock-based compensation expense is recognized on a straight-line basis over the requisite service period for each award. Further, stock-based compensation expense recognized in the Company’s Consolidated Statements of Operations is based on awards expected to vest and therefore the amount of expense has been reduced for estimated forfeitures, which are based on historical experience. If actual forfeitures differ from estimates at the time of grant they will be revised in subsequent periods. The Company uses a lattice model with a Monte Carlo simulation to value restricted stock unit awards with performance and market conditions. This valuation methodology utilizes the closing price of the Company’s common stock on grant date and several key assumptions, including expected volatility of the Company’s stock price, risk-free rates of return, expected dividend yield and estimated total shareholder return. If factors change and different assumptions are employed in determining the fair value of stock-based awards, the stock-based compensation expense recorded in future periods may differ significantly from what was recorded in the current period. See Note 17 to these Consolidated Financial Statements for further information. |
Nonqualified Deferred Compensation Plan | Nonqualified Deferred Compensation Plan The Company’s Nonqualified Deferred Compensation Plan (the NQDC Plan) allows eligible employees, including members of the Company’s Board of Directors (the Board), management and certain highly-compensated employees as designated by the NQDC Plan’s administrative committee, to make voluntary deferrals of compensation to specified dates, retirement or death. Participants are permitted to defer portions of their salary, annual cash bonus and restricted stock. The Company is not allowed to make additional direct contributions to the NQDC Plan on behalf of the participants without further action by the Board. All of the investments held in the NQDC Plan are classified as trading securities and recorded at fair value with changes in the investments’ fair values recognized as earnings in the period they occur. Company stock issued and held by the NQDC Plan is accounted for similarly to treasury stock in that the value of the employer stock is determined on the date the restricted stock vests and the shares are issued into the NQDC Plan. The restricted stock issued into the NQDC Plan is recorded as stockholders’ equity and changes in the fair value of the corresponding liability are recognized in earnings as incurred. The corresponding liability for the NQDC Plan is included in Accounts Payable and Accrued Liabilities and Other Long-Term Liabilities in the Company’s Consolidated Balance Sheets. The corresponding asset for the NQDC Plan is included in Other Current Assets and Other Assets in the Company’s Consolidated Balance Sheets. |
Income Taxes | Income Taxes The Company calculates and provides for income taxes in each of the tax jurisdictions in which it operates. Deferred tax assets and liabilities, measured using enacted tax rates, are recognized for the future tax consequences of temporary differences between the tax and financial statement basis of assets and liabilities. A valuation allowance reduces the deferred tax assets to the amount that is more likely than not to be realized. The Company establishes liabilities or reduces assets for uncertain tax positions when the Company believes certain tax positions are not more likely than not of being sustained if challenged. Each quarter, the Company evaluates these uncertain tax positions and adjusts the related tax assets and liabilities in light of changing facts and circumstances. The Company uses financial projections to support its net deferred tax assets, which contain significant assumptions and estimates of future operations. If such assumptions were to differ significantly, it may have a material impact on the Company’s ability to realize its deferred tax assets. At the end of each period, the Company will reassess the ability to realize its deferred tax benefits. If it is more likely than not that the Company would not realize the deferred tax benefits, a valuation allowance may need to be established against all or a portion of the deferred tax assets, which will result in a charge to tax expense. |
Foreign Currency and Other Hedging Instruments | Foreign Currency and Other Hedging Instruments The Company engages in transactions denominated in foreign currencies and, as a result, is exposed to changes in foreign currency exchange rates. To manage the volatility resulting from fluctuating foreign currency exchange rates, the Company nets its exposures, where possible to take advantage of natural offsets and enters into forward foreign currency exchange contracts for the remaining exposures. The Company accounts for its derivative instruments as either assets or liabilities on the balance sheet and measures them at fair value. Derivatives that are not defined as hedging instruments are adjusted to fair value through earnings. Gains and losses resulting from changes in fair value are accounted for depending on the use of the derivative and whether it is designated and qualifies for hedge accounting. The Company assesses, both at inception and on an ongoing basis, whether the derivatives that are used in hedging transactions are highly effective in offsetting the changes in cash flows of the hedged items. The Company also assesses hedge ineffectiveness on a monthly basis and records the gain or loss related to the ineffective portion to current earnings. If the Company determines that a forecasted transaction is no longer probable of occurring, it discontinues hedge accounting for the affected portion of the hedge instrument, and any related unrealized gain or loss on the contract is recognized in current earnings. See Note 12 to these Consolidated Financial Statements for further information. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company discloses the fair value of financial instruments for assets and liabilities for which the value is practicable to estimate. The carrying amounts of all cash equivalents, short-term and long-term investments and forward exchange contracts approximate fair value based upon quoted market prices. The fair values of trade accounts receivables, accounts payable and other financial instruments approximate carrying value due to their short-term nature, and would be considered level 2 items in the fair value hierarchy. |
Business Combinations | Business Combinations The Company allocates the purchase price of acquired businesses to the tangible and intangible assets acquired and liabilities assumed based upon their estimated fair values on the acquisition date. The purchase price allocation process requires management to make significant estimates and assumptions, especially at the acquisition date with respect to intangible assets and in-process research and development (IPR&D). In connection with the purchase price allocations for acquisitions, the Company estimates the fair value of contingent payments utilizing a probability-based income approach inclusive of an estimated discount rate. |
Contingent Acquisition Consideration Payable | Contingent Acquisition Consideration Payable The Company determines the fair value of contingent acquisition consideration payable on the acquisition date using a probability-based income approach utilizing an appropriate discount rate. Each reporting period thereafter, the Company revalues these obligations and records increases or decreases in their fair value as adjustments to Intangible Asset Amortization and Contingent Consideration in the Company’s Consolidated Statements of Operations. Changes in the fair value of the contingent acquisition consideration payable can result from adjustments to the estimated probability and assumed timing of achieving the underlying milestones, as well as from changes to the discount rates and periods. |
Comprehensive Income (Loss) and Accumulated Other Comprehensive Income | Comprehensive Income (Loss) and Accumulated Other Comprehensive Income Comprehensive income (loss) includes net income (loss) and certain changes in stockholders’ equity that are excluded from net income (loss), such as changes in unrealized gains and losses on the Company’s available-for-sale securities, unrealized gains (losses) on foreign currency hedges and changes in the Company’s cumulative foreign currency translation account. |
Reclassifications And Adjustments | Reclassifications and Adjustments Certain items in the prior year’s Consolidated Financial Statements have been reclassified to conform to the current presentation. |
Prior to Regulatory Approval | |
Significant Accounting Policies [Line Items] | |
Inventory | Inventories Produced in Preparation for Product Launches The Company capitalizes inventories produced in preparation for product launches based upon the probability of regulatory approval and earning future revenues. Typically, capitalization of such inventory begins when positive results have been obtained for the clinical trials that the Company believes are necessary to support regulatory approval, uncertainties regarding ultimate regulatory approval have been significantly reduced and the Company has determined it is probable that these capitalized costs will provide some future economic benefit in excess of capitalized costs. The material factors considered by the Company in evaluating these uncertainties include the receipt and analysis of positive pivotal clinical trial results for the underlying product candidate, results from meetings with the relevant regulatory authorities prior to the filing of regulatory applications, and the compilation of the regulatory application. The Company closely monitors the status of each respective product within the regulatory approval process, including all relevant communication with regulatory authorities. The Company also considers its historical experience with manufacturing and commercializing similar products and the relevant product candidate. If the Company is aware of any specific material risks or contingencies other than the normal regulatory review and approval process, or if there are any specific issues identified relating to safety, efficacy, manufacturing, marketing or labeling, the related inventory would generally not be capitalized. For inventories that are capitalized in preparation of product launch, anticipated future sales, expected approval date and shelf lives are evaluated in assessing realizability. The shelf life of a product is determined as part of the regulatory approval process; however, in evaluating whether to capitalize pre-launch inventory production costs, the Company considers the product stability data of all of the pre-approval production to date to determine whether there is adequate expected shelf life for the capitalized pre-launch production costs. In applying the lower of cost or net realizable value to pre-launch inventory, the Company estimates a range of likely commercial prices based on its comparable commercial products. |
SUMMARY OF SIGNIFICANT ACCOUN35
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Schedule Of Property, Plant And Equipment Estimated Useful Lives | Leasehold improvements Shorter of life of asset or lease term Building and improvements 20 to 50 years Manufacturing and laboratory equipment 5 to 15 years Computer hardware and software 3 to 8 years Office furniture and equipment 5 years Vehicles 5 years Land improvements 10 years Land Not applicable Construction-in-progress Not applicable |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Business Acquisition [Line Items] | |
Fair Value of Identifiable Lease Intangible Assets Acquired by Asset Class | The following table sets forth the fair value of the components of the identifiable intangible assets acquired by asset class as of the date of acquisition: Above market leases $ 351 In-place leases 3,554 Total intangible assets subject to amortization $ 3,905 |
Prosensa Holding N.V | |
Business Acquisition [Line Items] | |
Summary of Estimated Fair Values of Assets Acquired and Liabilities Assumed | The following table presents the allocation of the purchase consideration for the Prosensa acquisition, including the CVRs, based on fair value. Cash and cash equivalents $ 141,669 Trade accounts receivable 3,086 Other current assets 1,537 Property, plant and equipment 2,683 Intangible assets 497 Other assets 104 Acquired IPR&D 772,808 Total identifiable assets acquired 922,384 Accounts payable and accrued expenses (68,799 ) Debt assumed (57,053 ) Deferred tax liability (193,202 ) Total liabilities assumed (319,054 ) Net identifiable assets acquired 603,330 Goodwill 148,134 Net assets acquired $ 751,464 |
San Rafael Corporate Center | |
Business Acquisition [Line Items] | |
Summary of Estimated Fair Values of Assets Acquired and Liabilities Assumed | The following table summarizes the estimated fair values of assets acquired as of the date of acquisition: Estimated Fair Value Estimated Useful Lives Building and improvements $ 94,414 50 years Land 14,565 Land improvements 3,616 10 years Intangible assets 3,905 Remaining lease terms Total identifiable net assets $ 116,500 |
GOODWILL - SCHEDULE OF CHANGES
GOODWILL - SCHEDULE OF CHANGES IN GOODWILL (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in Goodwill | The following table represents the changes in goodwill for the year ended December 31, 2015: Balance at December 31, 2014 $ 54,258 Addition of goodwill related to the acquisition of Prosensa 148,134 Reduction of goodwill related to the sale of talazoparib (1) (5,353 ) Balance at December 31, 2015 $ 197,039 (1) See Note 8 to these Consolidated Financial Statements for additional discussion related to the sale of talazoparib. |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Investments Schedule [Abstract] | |
Amortized Cost, Gross Unrealized Holding Gain or Loss, and Fair Value of Available For Sale Security by Major Security type | The amortized cost, gross unrealized holding gains or losses, and fair value of the Company’s available-for-sale securities by major security type at December 31, 2015 and 2014 are summarized in the tables below: Amortized Cost Gross Unrealized Holding Gains Gross Unrealized Holding Losses Aggregate Fair Value at December 31, 2015 Certificates of deposit $ 63,919 $ 1 $ — $ 63,920 Corporate debt securities 358,625 20 (732 ) 357,913 Commercial paper 12,733 — — 12,733 U.S. government agency securities 186,882 — (344 ) 186,538 Greek government-issued bonds 48 79 — 127 Total $ 622,207 $ 100 $ (1,076 ) $ 621,231 Amortized Cost Gross Unrealized Holding Gains Gross Unrealized Holding Losses Aggregate Fair Value at December 31, 2014 Certificates of deposit $ 72,302 $ 1 $ — $ 72,303 Corporate debt securities 95,478 — (342 ) 95,136 Greek government-issued bonds 50 73 — 123 Total $ 167,830 $ 74 $ (342 ) $ 167,562 |
Fair Values of Available-For-Sale Securities by Contractual Maturity | The fair values of available-for-sale securities by contractual maturity were as follows: December 31, 2015 2014 Maturing in one year or less $ 195,579 $ 69,706 Maturing after one year through five years 425,652 97,856 Total $ 621,231 $ 167,562 |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets | Intangible assets consisted of the following: December 31, 2015 2014 Intangible assets: Finite-lived intangible assets $ 129,572 $ 123,365 Indefinite-lived intangible assets 607,548 74,430 Gross intangible assets: 737,120 197,795 Less: Accumulated amortization (53,124 ) (41,217 ) Net carrying value $ 683,996 $ 156,578 |
Schedule of Net-Book-Value and Estimated Remaining Life of Finite-Lived Intangible Assets | The following table summarizes the net-book-value and estimated remaining life of the Company’s finite-lived intangible assets at December 31, 2015: Net Balance at December 31, 2015 Average Remaining Life Repurchased royalty rights $ 53,438 7.9 years Acquired intellectual property 19,652 8.6 years License payments for marketing approvals 2,380 5.7 years SRCC in-place and above market tenant leases 978 Remaining lease terms Total $ 76,448 |
Schedule of Future Amortization Expense of Finite-Lived Intangible Assets | As of December 31, 2015, the estimated future amortization expense associated with the Company’s finite-lived intangible assets for each of the five succeeding fiscal years is as follows: Fiscal Year Amount 2016 $ 11,371 2017 10,904 2018 10,874 2019 10,605 2020 8,188 Thereafter 24,506 $ 76,448 |
Schedule of Indefinite-Lived Intangible Assets | Indefinite-lived intangible assets consisted of the following: December 31, 2015 2014 In-Process Research and Development: Talazoparib $ — $ 35,150 Kyndrisa 533,064 — Other exons 41,044 — Reveglucosidase alfa 25,010 25,010 Other acquired pre-clinical compounds 8,430 14,270 Net carrying value $ 607,548 $ 74,430 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property Plant And Equipment [Abstract] | |
Schedule of Property Plant and Equipment Net | Property, plant and equipment, net consisted of the following: December 31, 2015 2014 Building and improvements $ 442,100 $ 335,991 Manufacturing and laboratory equipment 145,313 124,564 Computer hardware and software 113,442 97,032 Leasehold improvements 44,247 39,297 Furniture and equipment 22,817 13,717 Land improvements 4,881 4,106 Land 45,727 29,358 Construction-in-progress 164,283 108,340 982,810 752,405 Less: Accumulated depreciation (278,603 ) (228,889 ) Total property, plant and equipment, net $ 704,207 $ 523,516 |
INVENTORY (Tables)
INVENTORY (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Inventory Disclosure [Abstract] | |
Schedule Of Inventory | Inventory consisted of the following: December 31, 2015 2014 Raw materials $ 46,115 $ 22,488 Work-in-process 150,289 114,393 Finished goods 75,279 62,571 Total inventory $ 271,683 $ 199,452 |
SUPPLEMENTAL BALANCE SHEET IN42
SUPPLEMENTAL BALANCE SHEET INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Schedule of Other Current Assets | Other current assets consisted of the following: December 31, 2015 2014 Prepaid expenses $ 27,957 $ 35,390 Short-term forward currency exchange contract assets 10,478 10,513 Promissory notes receivable, net — 46,946 Restricted investments 7,348 2,354 Convertible promissory note conversion option — 2,386 Other receivables 14,150 9,733 Other 445 1,202 Total other current assets $ 60,378 $ 108,524 |
Schedule of Other Assets | Other assets consisted of the following: December 31, 2015 2014 Deposit for business acquisition $ 371,756 $ — Deposits 8,606 12,021 Strategic investments 18,056 30,811 Long-term forward foreign currency exchange contract assets 3,533 5,387 Other 6,693 6,338 Total other assets $ 408,644 $ 54,557 |
Schedule of Accounts Payable and Accrued Liabilities | Accounts payable and accrued liabilities consisted of the following: December 31, 2015 2014 Accounts payable and accrued operating expenses $ 179,294 $ 139,513 Accrued income taxes 59,572 — Accrued compensation expense 78,424 45,479 Accrued vacation expense 16,921 12,540 Accrued rebates payable 32,553 14,859 Accrued royalties payable 10,412 9,050 Value added taxes payable 6,377 5,479 Other 8,958 4,924 Total accounts payable and accrued liabilities $ 392,511 $ 231,844 |
Schedule of Estimated Accrued Rebates, Reserve for Cash Discounts and Allowance for Doubtful Accounts | The roll forward of significant estimated accrued rebates, reserve for cash discounts and allowance for doubtful accounts for the years ended December 31, 2015, 2014 and 2013 were as follows: Balance at Beginning of Period Provision for Current Period Sales Provision/ (Reversals) for Prior Period Sales Actual Charges Related to Current Period Sales Actual Charges Related to Prior Period Sales Balance at End of Period Year ended December 31, 2015: Accrued rebates $ 14,859 $ 45,356 $ (1,245 ) $ (18,421 ) $ (7,996 ) $ 32,553 Reserve for cash discounts 688 7,402 — (6,722 ) (537 ) 831 Sales return reserve — 40 — — — 40 Allowance for doubtful accounts 490 — (397 ) — — 93 Year ended December 31, 2014: Accrued rebates $ 10,429 $ 24,431 $ (1,159 ) $ (12,768 ) $ (6,074 ) $ 14,859 Reserve for cash discounts 388 6,435 — (5,747 ) (388 ) 688 Sales return reserve 907 — (907 ) — — — Allowance for doubtful accounts 529 410 (319 ) — (130 ) 490 Year ended December 31, 2013: Accrued rebates $ 9,625 $ 18,872 $ (1,169 ) $ (12,025 ) $ (4,874 ) $ 10,429 Reserve for cash discounts 372 4,549 — (4,191 ) (342 ) 388 Sales return reserve — 907 — — — 907 Allowance for doubtful accounts 348 138 43 — — 529 |
DERIVATIVE INSTRUMENTS AND HE43
DERIVATIVE INSTRUMENTS AND HEDGING STRATEGIES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Fair Value Carrying Amount of Derivative Instruments | The fair value carrying amounts of the Company’s derivative instruments were as follows: Asset Derivatives Liability Derivatives December 31, 2015 December 31, 2015 Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives designated as hedging instruments: Forward foreign currency exchange contracts Other current assets $ 10,478 Accounts payable & accrued liabilities $ 1,986 Forward foreign currency exchange contracts Other assets 3,533 Other long- term liabilities 3,057 Total $ 14,011 $ 5,043 Derivatives not designated as hedging instruments: Forward foreign currency exchange contracts Other current assets $ — Accounts payable & accrued liabilities $ 22 Total — 22 Total value of derivative contracts $ 14,011 $ 5,065 Asset Derivatives Liability Derivatives December 31, 2014 December 31, 2014 Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives designated as hedging instruments: Forward foreign currency exchange contracts Other current assets $ 10,206 Accounts payable & accrued liabilities $ — Forward foreign currency exchange contracts Other assets 5,387 Other long- term liabilities — Total $ 15,593 $ — Derivatives not designated as hedging instruments: Forward foreign currency exchange contracts Other current assets $ 307 Accounts payable & accrued liabilities $ 12 Total 307 12 Total value of derivative contracts $ 15,900 $ 12 |
Effect of Derivative Instruments | The effect of the Company’s derivative instruments on the Consolidated Financial Statements for the years ended December 31, 2015, 2014 and 2013 was as follows: Forward Foreign Currency Exchange Contracts 2015 2014 2013 Derivatives Designated as Hedging Instruments: Net gain (loss) recognized in Other Comprehensive Income (OCI) (1) $ 17,300 $ 18,078 $ (1,366 ) Net gain (loss) reclassified from accumulated OCI into income (2) 19,604 643 49 Net gain (loss) recognized in net loss (3) (727 ) (294 ) 310 Derivatives Not Designated as Hedging Instruments: Net gain (loss) recognized in net loss (4) $ 4,493 $ 8,010 $ (2,041 ) (1) Net change in the fair value of the effective portion classified as OCI. (2) Effective portion classified as net product revenues. (3) Ineffective portion and amount excluded from effectiveness testing classified as SG&A expense. (4) Classified as selling, general and administrative expense. |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Assets and Liabilities | The tables below present the fair value of these financial assets and liabilities determined using the following input levels. Fair Value Measurements at December 31, 2015 Quoted Price in Active Markets For Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Assets: Cash and cash equivalents: Overnight deposits $ 290,731 $ — $ — $ 290,731 Money market instruments — 106,309 — 106,309 Total cash and cash equivalents 290,731 106,309 — 397,040 Available-for-sale securities: Short-term: Certificates of deposit — 56,951 — 56,951 Corporate debt securities — 42,673 — 42,673 Commercial paper — 12,733 — 12,733 U.S. government agency securities — 83,222 — 83,222 Long-term: Certificates of deposit — 6,969 — 6,969 Corporate debt securities — 315,240 — 315,240 U.S. government agency securities — 103,316 — 103,316 Greek government-issued bonds — 127 — 127 Total available-for-sale securities — 621,231 — 621,231 Other Current Assets: Nonqualified Deferred Compensation Plan assets — 440 — 440 Forward foreign currency exchange contract (1) — 10,478 — 10,478 Restricted investments (2) — 7,348 — 7,348 Total other current assets — 18,266 — 18,266 Other Assets: Nonqualified Deferred Compensation Plan assets — 6,362 — 6,362 Forward foreign currency exchange contract (1) — 3,533 — 3,533 Strategic investment (4) 18,056 — — 18,056 Total other assets 18,056 9,895 — 27,951 Total assets $ 308,787 $ 755,701 $ — $ 1,064,488 Liabilities: Current Liabilities: Nonqualified Deferred Compensation Plan liability $ 1,151 $ 440 $ — $ 1,591 Forward foreign currency exchange contract (1) — 2,008 — 2,008 Contingent acquisition consideration payable — — 52,946 52,946 Total current liabilities 1,151 2,448 52,946 56,545 Other long-term liabilities: Nonqualified Deferred Compensation Plan liability 24,341 6,362 — 30,703 Forward foreign currency exchange contract (1) — 3,057 — 3,057 Contingent acquisition consideration payable — — 32,663 32,663 Total other long-term liabilities 24,341 9,419 32,663 66,423 Total liabilities $ 25,492 $ 11,867 $ 85,609 $ 122,968 Fair Value Measurements at December 31, 2014 Quoted Price in Active Markets For Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Assets: Cash and cash equivalents: Overnight deposits $ 225,159 $ — $ — $ 225,159 Money market instruments — 650,327 — 650,327 Total cash and cash equivalents 225,159 650,327 — 875,486 Available-for-sale securities: Short-term: Certificates of deposit — 54,174 — 54,174 Corporate debt securities — 15,532 — 15,532 Long-term: Certificates of deposit — 18,129 — 18,129 Corporate debt securities — 79,604 — 79,604 Greek government-issued bonds — 123 — 123 Total available-for-sale securities — 167,562 — 167,562 Other Current Assets: Nonqualified Deferred Compensation Plan assets — 514 — 514 Forward foreign currency exchange contract (1) — 10,513 — 10,513 Restricted investments (2) — 2,354 — 2,354 Embedded derivative (3) — — 2,386 2,386 Total other current assets — 13,381 2,386 15,767 Other Assets: Nonqualified Deferred Compensation Plan assets — 5,112 — 5,112 Restricted investments (2) — 5,387 — 5,387 Strategic investment (4) 30,811 — — 30,811 Total other assets 30,811 10,499 — 41,310 Total assets $ 255,970 $ 841,769 $ 2,386 $ 1,100,125 Liabilities: Current Liabilities: Nonqualified Deferred Compensation Plan liability $ 1,790 $ 514 $ — $ 2,304 Forward foreign currency exchange contract (1) — 12 — 12 Contingent acquisition consideration payable — — 3,895 3,895 Total current liabilities 1,790 526 3,895 6,211 Other long-term liabilities: Nonqualified Deferred Compensation Plan liability 18,453 5,112 — 23,565 Contingent acquisition consideration payable — — 38,767 38,767 Total other long-term liabilities 18,453 5,112 38,767 62,332 Total liabilities $ 20,243 $ 5,638 $ 42,662 $ 68,543 (1) See Note 12 to these Consolidated Financial Statements for further information regarding the derivative instruments. (2) The restricted investments at December 31, 2015 and 2014 secure the Company’s irrevocable standby letter of credit obtained in connection with certain commercial agreements. (3) The embedded derivative represents the fair value of the conversion feature of a promissory note which may be settled in the issuer’s underlying shares. (4) The Company has investments in marketable equity securities measured using quoted prices in an active market that are considered strategic investments. See Note 7 to these Consolidated Financial Statements for additional discussion regarding the Company’s strategic investments. |
Liabilities Measured at Fair Value Using Level 3 Inputs | Contingent acquisition consideration payable at December 31, 2014 $ 42,662 Addition of contingent consideration payable related to the Prosensa acquisition 71,402 Reversal of contingent liability related to no early FDA approval for Kyndrisa (39,726 ) Changes in the fair value of other acquisition contingent consideration payable 11,271 Contingent acquisition consideration payable at December 31, 2015 $ 85,609 |
Asset Retirement Obligation Liability and Corresponding Capital Asset | Asset retirement obligations at December 31, 2014 $ 3,765 Accretion expense 148 Additions 820 Settlements (29 ) Asset retirement obligations at December 31, 2015 $ 4,704 |
CONVERTIBLE DEBT (Tables)
CONVERTIBLE DEBT (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Summary of Additional Noncash Interest Expense Recognized During the Period | The following table summarizes the additional interest expense recognized for the accretion of the debt discount and amortization of the deferred offering costs. Years Ended December 31, 2015 2014 2013 Convertible Notes due 2018 Amortization of issuance costs $ 1,921 $ 1,910 $ 397 Accretion of debt discount 13,633 12,963 2,620 Convertible Notes due 2020 Amortization of issuance costs 1,283 1,279 264 Accretion of debt discount 11,567 10,930 2,201 Total $ 28,404 $ 27,082 $ 5,482 |
Summary of Convertible Debt | The following table summarizes information regarding the Company’s convertible debt at December 31: 2015 2014 Convertible Notes due 2020 $ 374,993 $ 375,000 Unamortized discount (65,478 ) (77,045 ) Unamortized deferred offering costs (6,210 ) (7,493 ) Convertible Notes due 2020, net 303,305 290,462 Convertible Notes due 2018 374,980 375,000 Unamortized discount (41,904 ) (55,537 ) Unamortized deferred offering costs (5,415 ) (7,335 ) Convertible Notes due 2018, net 327,661 312,128 Convertible Notes due 2017 31,430 40,558 Unamortized deferred offering costs (110 ) (246 ) Convertible Notes due 2017, net 31,320 40,312 Total convertible debt, net $ 662,286 $ 642,902 Fair value of fixed rate convertible debt Convertible Notes due in 2020 (1) $ 502,701 $ 456,360 Convertible Notes due in 2018 (1) 482,584 442,448 Convertible Notes due in 2017 (1) 162,016 180,984 Total $ 1,147,301 $ 1,079,792 (1) The fair value of the Company’s fixed rate convertible debt is based on open market trades and is classified as Level 1 in the fair value hierarchy. |
Summary of Convertible Debt Interest Expense | Interest expense on the Company’s convertible debt consisted of the following: Years Ended December 31, 2015 2014 2013 Coupon interest $ 9,750 $ 9,417 $ 4,550 Amortization of issuance costs 3,294 3,332 1,053 Accretion of debt discount 25,200 23,893 4,821 Total interest expense on convertible debt $ 38,244 $ 36,642 $ 10,424 |
NET LOSS PER COMMON SHARE (Tabl
NET LOSS PER COMMON SHARE (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Schedule Of Anti-Dilutive Common Stock Excluded From Computation of Diluted Net Loss Per Share | The table below presents potential shares of common stock that were excluded from the computation as they were anti-dilutive using the treasury stock method (in thousands): Years Ended December 31, 2015 2014 2013 Options to purchase common stock 10,323 11,477 13,157 Common stock issuable under the 2017 Notes 1,544 1,992 3,047 Common stock issuable under the 2018 and 2020 Notes 7,966 7,966 7,966 Unvested restricted stock units 1,743 1,244 1,159 Potentially issuable common stock for the ESPP purchases 180 195 197 Common stock held by the NQDC 243 224 193 Total number of potentially issuable shares 21,999 23,098 25,719 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of Provision for (Benefit from) Income Taxes Based on Income (Loss) Before Income Taxes | The provision for (benefit from) income taxes is based on income/(loss) before income taxes as follows: Years Ended December 31, 2015 2014 2013 U.S. Source $ 182,215 $ 49,411 $ 46,675 Non-U.S. Source (336,939 ) (174,279 ) (223,178 ) Loss before income taxes $ (154,724 ) $ (124,868 ) $ (176,503 ) |
Schedule of Components of Provision for (Benefit From) Income Taxes | The U.S. and foreign components of the provision for (benefit from) income taxes are as follows: Years Ended December 31, 2015 2014 2013 Provision for current income tax expense: Federal 84,743 28,093 5,060 State and local 5,323 3,011 1,496 Foreign 3,836 3,614 2,199 93,902 34,718 8,755 Provision for (benefit from) deferred income tax expense: Federal (17,741 ) (20,367 ) (6,084 ) State and local (8,770 ) (4,982 ) (2,658 ) Foreign (50,316 ) (268 ) (163 ) (76,827 ) (25,617 ) (8,905 ) Provision for (benefit from) income taxes $ 17,075 $ 9,101 $ (150 ) |
Schedule of Reconciliation of Statutory Federal Income Tax Rate to Company's Effective Income Tax Rate | The following is a reconciliation of the statutory federal income tax rate to the Company’s effective income tax rate expressed as a percentage of income/(loss) before income taxes: Years Ended December 31, 2015 2014 2013 Federal statutory income tax rate 35.0 % 35.0 % 35.0 % State and local taxes (2.2 )% (1.6 )% (0.3 )% Orphan Drug & General Business Credit 34.8 % 29.3 % 14.7 % Stock compensation expense (2.8 )% (2.4 )% (1.7 )% Changes in the fair value of contingent acquisition consideration payable 0.2 % (3.6 )% (2.9 )% Subpart F income (8.4 )% (9.2 )% — Foreign tax rate differential (46.2 )% (51.5 )% (45.4 )% Other (2.9 )% (3.6 )% 1.6 % Valuation allowance/Deferred benefit (18.5 )% 0.3 % (0.9 )% Effective income tax rate (11.0 )% (7.3 )% 0.1 % |
Schedule of Components of Net Deferred Tax Assets | The significant components of the Company’s net deferred tax assets are as follows: December 31, 2015 2014 Net deferred tax assets: Net operating loss carryforwards $ 44,942 $ 16,208 Tax credit carryforwards 143,987 171,840 Accrued expenses, reserves, and prepaids 79,029 30,626 Intangible assets 16,177 14,550 Stock-based compensation 49,322 34,133 Inventory 18,942 14,108 Impairment and capital loss carryforwards 5,005 1,997 Other 1,155 928 Valuation allowance (67,708 ) (7,812 ) Total deferred tax assets 290,851 276,578 Joint venture basis difference (1,888 ) (1,781 ) Acquired intangibles (162,689 ) (33,049 ) Convertible notes discount (32,162 ) (39,317 ) Property, plant and equipment (13,192 ) (4,932 ) Unrealized gains (4,256 ) (6,525 ) Total deferred tax liabilities (214,187 ) (85,604 ) Net deferred tax assets $ 76,664 $ 190,974 |
Schedule of Reconciliation of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits for the years ended December 31, 2015 is as follows: December 31, 2015 2014 Balance at beginning of period $ 71,663 $ 50,815 Additions based on tax positions related to the current year 13,614 20,303 Additions for tax positions of prior years 1,454 545 Balance at end of period $ 86,731 $ 71,663 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Summary of Stock Option Activity | The following table summarizes activity under the Company’s stock option plans, including the 2012 and 2014 Inducement Plans and those suspended upon the adoption of the 2006 Share Incentive Plan for the year ended December 31, 2015. All option grants presented in the table had exercise prices not less than the fair value of the underlying common stock on the grant date: Shares Weighted Average Exercise Price Weighted Average Remaining Years Aggregate Intrinsic Value (1) Options outstanding as of December 31, 2014 11,477,164 $ 38.11 6.2 $ 600,112 Granted 728,770 $ 116.94 Exercised (1,723,345 ) $ 30.80 Expired and forfeited (159,686 ) $ 63.79 Options outstanding as of December 31, 2015 10,322,903 $ 44.50 5.6 $ 630,949 Options expected to vest at December 31, 2015 1,563,790 $ 62.18 $ 66,579 Exercisable at December 31, 2015 8,102,226 $ 35.62 4.9 $ 561,554 (1) The aggregate intrinsic value for outstanding options is calculated as the difference between the exercise price of the underlying awards and the quoted price of the Company’s common stock as of the last trading day for the respective year. The aggregate intrinsic value of options outstanding and exercisable includes options with an exercise price below $104.76, the closing price of the Company’s common stock on December 31, 2015. |
Stock Option Valuation Assumptions | The assumptions used to estimate the per share fair value of stock options granted under the 2012 Inducement Plan, the 2014 Inducement Plan and the Share Incentive Plan were as follows: Years Ended December 31, 2015 2014 2013 Expected volatility 36 – 45% 44 – 45% 44 – 47% Dividend yield 0.00% 0.00% 0.00% Expected life 6.4 - 8.0 years 6.9 years 6.6 – 6.8 years Risk-free interest rate 1.5 – 2.2% 1.8 – 2.3% 1.0 – 2.4% |
Employee Stock Purchase Plan Valuation Assumptions | The assumptions used to estimate the per share fair value of stock purchase rights granted under the ESPP were as follows: Years Ended December 31, 2015 2014 2013 Expected volatility 36 - 38% 38 - 39% 37% Dividend yield 0.00% 0.00% 0.00% Expected life 6-24 months 6-24 months 6-24 months Risk-free interest rate 0.1 - 0.8% 0.1- 0.5% 0.1- 0.3% |
Multiple Performance Conditions for Vesting of Base RSUs | The following table details the contingent performance awards, which ones were achieved and the number of RSUs earned based on the final TSR multiplier of 124% at December 31, 2015. Strategic Performance Goals Percentage of Base RSUs to Vest Upon Achievement of Goal Base Number of RSUs Granted Before TSR Multiplier Performance Goal Attained Number of RSUs Earned After TSR Multiplier 1.24 Product Goals Approval of Vimizim in the U.S. or EU prior to December 31, 2015 35 % 301,000 Yes 373,240 Approval of pegvaliase (PEG PAL) or any other non-Vimizim product in the U.S. or EU prior to December 31, 2015 25 % 215,000 No — Financial Goal Total revenues of at least $775.0 million in fiscal 2015 40 % 344,000 Yes 426,560 860,000 799,800 |
Stock-Based Compensation Expense | Compensation expense included in the Company’s Consolidated Statements of Operations for all stock-based compensation arrangements was as follows: Years Ended December 31, 2015 2014 2013 Cost of sales $ 6,836 $ 6,076 $ 4,860 Research and development 49,399 33,835 27,763 Selling, general and administrative 55,290 46,499 31,753 Total stock-based compensation expense $ 111,525 $ 86,410 $ 64,376 |
Restricted Stock With Service Based Vesting Conditions | |
Summary of Non-Vested Restricted Stock Unit Activity | A summary of non-vested RSU activity under the plan for the year ended December 31, 2015 as follows: Shares Weighted Average Grant Date Fair Value Weighted Average Remaining Years Aggregate Intrinsic Value Non-vested units as of December 31, 2014 1,540,703 $ 59.46 2.9 $ 139,280 Granted 1,234,650 $ 119.86 Vested (489,301 ) $ 54.48 Forfeited (138,843 ) $ 81.67 Non-vested units as of December 31, 2015 2,147,209 $ 93.89 2.8 $ 224,942 Non-vested units expected to vest at December 31, 2015 1,895,918 $ 92.56 $ 199,917 |
Restricted Stock With Performance and Market Based Vesting Conditions | |
Summary of Non-Vested Restricted Stock Unit Activity | A summary of non-vested Base RSU activity under the plans for the year ended December 31, 2015 is as follows: Base Awards Weighted Average Grant Date Fair Value Weighted Average Remaining Years Aggregate Intrinsic Value Non-vested units with performance and market vesting conditions as of December 31, 2014 860,000 $ 34.66 1.2 $ 77,744 Granted — Vested — Forfeited — Non-vested units with performance and market vesting conditions as of December 31, 2015 860,000 $ 34.66 0.2 $ 90,094 |
COMPREHENSIVE INCOME (Tables)
COMPREHENSIVE INCOME (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Amounts Reclassified out of Accumulated Other Comprehensive Income (Loss) | The following table summarizes amounts reclassified out of Accumulated Other Comprehensive Income/(Loss) (AOCI) and their effect on the Company’s Consolidated Statements of Operations for the years ended December 31, 2015 and 2014. Amount Reclassified from AOCI (Gain) Loss Years Ended December 31, Consolidated Statement of Details about AOCI Components 2015 2014 Operations Classification Gains on cash flow hedges: Forward foreign currency exchange contracts $ 17,715 $ 1,008 Net product revenues Forward foreign currency exchange contracts 1,889 — Selling, general and administrative Other-than-temporary impairment on available-for-sale securities (1,160 ) — Other income (expense) Gain on sale of available-for-sale investment 3,033 — Other income (expense) Less income tax effect of the above 681 365 Provision for (benefit from) income taxes $ 20,796 $ 643 Net loss |
Summary of Changes in Accumulated Balances of Other Comprehensive Income Loss Including Current Period Other Comprehensive Income and Reclassifications | The following table summarizes changes in the accumulated balances for each component, of other comprehensive income/(loss), including current period other comprehensive income and reclassifications out of AOCI, for the years ended December 31, 2015 and 2014. Year Ended December 31, 2015 Gains and Losses on Cash Flow Hedges Unrealized Gains on Available-for-Sale Securities Foreign Currency Items Total AOCI balance at December 31, 2014 15,906 11,511 49 27,466 Other comprehensive income (loss) before reclassifications 17,300 (2,878 ) (59 ) 14,363 Less gain (loss) reclassified from AOCI 19,604 1,192 — 20,796 Net current-period other comprehensive income (loss) (2,304 ) (4,070 ) (59 ) (6,433 ) AOCI balance at December 31, 2015 13,602 7,441 (10 ) 21,033 Year Ended December 31, 2014 Gains and Losses on Cash Flow Hedges Unrealized Gains on Available-for-Sale Securities Foreign Currency Items Total AOCI balance at December 31, 2013 (1,529 ) 6,423 124 5,018 Other comprehensive income (loss) before reclassifications 18,078 5,088 (75 ) 23,091 Less gain (loss) reclassified from AOCI 643 — — 643 Net current-period other comprehensive income (loss) 17,435 5,088 (75 ) 22,448 AOCI balance at December 31, 2014 15,906 11,511 49 27,466 |
REVENUE AND CREDIT CONCENTRAT50
REVENUE AND CREDIT CONCENTRATIONS (Tables) - Net Product Revenue | 12 Months Ended |
Dec. 31, 2015 | |
Geographic Concentration Risk | |
Concentration Risk [Line Items] | |
Schedules of Consolidated Net Product Revenue Concentration | The table below summarizes consolidated net product revenues concentrations based on patient location for Vimizim, Naglazyme, Kuvan and Firdapse which are sold directly by the Company and global sales of Aldurazyme which is marketed by Genzyme. Genzyme is the Company’s sole customer for Aldurazyme and is responsible for marketing and selling Aldurazyme to third-parties. Net product revenues from Genzyme consists of royalties on worldwide net Aldurazyme sales and incremental product transfer revenues. Years Ended December 31, 2015 2014 2013 Region: United States 39 % 37 % 36 % Europe 20 % 20 % 22 % Latin America 16 % 16 % 14 % Rest of world 14 % 13 % 13 % Total net product revenues marketed by the Company 89 % 86 % 85 % Aldurazyme net product revenues marketed by Genzyme 11 % 14 % 15 % Total net product revenue 100 % 100 % 100 % |
Customer Concentration Risk | |
Concentration Risk [Line Items] | |
Schedules of Consolidated Net Product Revenue Concentration | The following table illustrates the percentage of the consolidated net product revenues attributable to the Company’s four largest customers. For the Years Ended December 31, 2015 2014 2013 Customer A 15 % 15 % 15 % Customer B (1) 11 % 14 % 16 % Customer C 10 % 12 % 9 % Customer D 13 % 11 % 11 % Total 49 % 52 % 51 % (1) Genzyme is the Company’s sole customer for Aldurazyme and is responsible for marketing and selling Aldurazyme to third-parties. Net product revenues from Genzyme consists of royalties on worldwide net Aldurazyme sales and incremental product transfer revenue. |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Segment Information by Product Revenue | The Company operates in one business segment, which primarily focuses on the development and commercialization of innovative biopharmaceuticals for serious diseases and medical conditions. All products are included in one segment because the majority of the Company’s products have similar economic and other characteristics, including the nature of the products and production processes, type of customers, distribution methods and regulatory environment. Years Ended December 31, 2015 2014 2013 Net product revenues by product: Vimizim $ 228,147 $ 77,319 $ 85 Naglazyme 303,090 334,447 271,244 Kuvan 239,336 202,987 167,422 Aldurazyme 97,912 105,616 83,545 Firdapse 16,037 18,047 16,064 Total net product revenues $ 884,522 $ 738,416 $ 538,360 |
Summary of Total Revenues from External Customers and Collaborative Partners by Geographic Region | The following table summarizes total revenues from external customers and collaborative partners by geographic region. Net product revenues are based on patient location for Vimizim, Naglazyme, Kuvan and Firdapse and Genzyme’s headquarters for Aldurazyme. Although Genzyme sells Aldurazyme worldwide, the royalties earned by the Company on Genzyme’s net sales are included in the U.S. region, as the transactions are with Genzyme whose headquarters are located in the U.S. Years Ended December 31, 2015 2014 2013 Total revenues by geographic region: United States $ 444,075 $ 378,288 $ 284,303 Europe 178,746 139,940 115,729 Latin America 142,305 118,562 67,339 Rest of world 124,769 112,494 81,114 Total revenues $ 889,895 $ 749,284 $ 548,485 |
Summary of Non-Monetary Long-Lived Assets by Geographic Region | The following table summarizes non-monetary long-lived assets by geographic region. Non-monetary long-lived assets primarily consists of property, plant and equipment, intangible assets, goodwill and deferred tax assets. December 31, 2015 2014 Long-lived assets by geography: United States $ 940,512 $ 827,884 Europe 865,233 102,451 Rest of world 2,253 1,630 Total long-lived assets $ 1,807,998 $ 931,965 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Minimum Lease Payments for Future Years | Minimum lease payments for future years are as follows: 2016 $ 7,209 2017 6,527 2018 5,444 2019 2,990 2020 2,352 Thereafter 9,953 Total $ 34,475 |
Nature of Operations and Busi53
Nature of Operations and Business Risks - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2015Product | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Number of approved products | 5 |
Schedule of Property Plant and
Schedule of Property Plant and Equipment (Detail) | 12 Months Ended |
Dec. 31, 2015 | |
Leasehold Improvements | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, estimated useful life | Shorter of life of asset or lease term |
Building and Improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life, (in years) | 20 years |
Building and Improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life, (in years) | 50 years |
Manufacturing and Laboratory Equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life, (in years) | 5 years |
Manufacturing and Laboratory Equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life, (in years) | 15 years |
Computer Hardware and Software | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life, (in years) | 3 years |
Computer Hardware and Software | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life, (in years) | 8 years |
Office Furniture and Equipment | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life, (in years) | 5 years |
Vehicles | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life, (in years) | 5 years |
Land Improvements | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life, (in years) | 10 years |
Summary of Significant Accoun55
Summary of Significant Accounting Policies - Additional Information (Detail) | Dec. 31, 2015 |
Minimum | |
Significant Accounting Policies [Line Items] | |
Royalty payment as percentage of net sales | 39.50% |
Maximum | |
Significant Accounting Policies [Line Items] | |
Royalty payment as percentage of net sales | 50.00% |
Recent Accounting Pronounceme56
Recent Accounting Pronouncements - Additional Information (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Recent Accounting Pronouncements [Abstract] | ||
Reclassification of deferred offering costs | $ 11.7 | $ 15.1 |
Current deferred tax assets | $ 31.2 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | Jan. 29, 2015 | Mar. 10, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Business Acquisition [Line Items] | |||||
Business acquisitions, net of cash acquired | $ 538,392 | $ 9,875 | |||
Contingent consideration payable | 85,600 | ||||
Net gain recognized due to early termination of lease and realization of remaining balance in deferred rent and reversal of asset retirement obligation | $ 10,092 | ||||
Prosensa Holding N.V | |||||
Business Acquisition [Line Items] | |||||
Business acquisitions, net of cash acquired | $ 751,500 | ||||
Business combination transaction costs | 9,700 | 7,000 | 2,700 | ||
Business acquisition, cash paid | 680,100 | ||||
Contractual right, amount | 160,000 | ||||
Acquired IPR&D | 772,808 | ||||
Prosensa Holding N.V | Kyndrisa and Prosensa's other primary product candidates | |||||
Business Acquisition [Line Items] | |||||
Acquired IPR&D | 731,800 | ||||
Prosensa Holding N.V | PRO 044 | |||||
Business Acquisition [Line Items] | |||||
Acquired IPR&D | 16,900 | ||||
Prosensa Holding N.V | PRO-045 | |||||
Business Acquisition [Line Items] | |||||
Acquired IPR&D | $ 24,100 | ||||
Prosensa Holding N.V | CVRs | |||||
Business Acquisition [Line Items] | |||||
Contractual right, share price | $ 4.14 | ||||
Contingent consideration payable | $ 71,400 | ||||
Prosensa Holding N.V | Prosensa Shares | |||||
Business Acquisition [Line Items] | |||||
Business acquisition, cash paid | $ 620,700 | ||||
Approximate percentage of shares tendered at closing of initial offering | 96.80% | ||||
Prosensa Holding N.V | Remaining Prosensa share holders | |||||
Business Acquisition [Line Items] | |||||
Business acquisition, cash paid | $ 20,800 | ||||
Prosensa Holding N.V | Vested options for Prosensa shares | |||||
Business Acquisition [Line Items] | |||||
Business acquisition, cash paid | $ 38,600 | ||||
San Rafael Corporate Center | |||||
Business Acquisition [Line Items] | |||||
Business acquisition, cash paid | $ 116,500 | ||||
Net gain recognized due to early termination of lease and realization of remaining balance in deferred rent and reversal of asset retirement obligation | 8,800 | ||||
San Rafael Corporate Center | Royalty, License and Other Revenues | |||||
Business Acquisition [Line Items] | |||||
Tenant revenue, other real estate | 2,700 | 4,000 | |||
Amortization expense | $ 1,200 | 1,800 | |||
San Rafael Corporate Center | Selling, General and Administrative | |||||
Business Acquisition [Line Items] | |||||
Business combination transaction costs | 300 | ||||
Net gain recognized due to early termination of lease and realization of remaining balance in deferred rent and reversal of asset retirement obligation | 2,700 | ||||
San Rafael Corporate Center | Research and Development | |||||
Business Acquisition [Line Items] | |||||
Net gain recognized due to early termination of lease and realization of remaining balance in deferred rent and reversal of asset retirement obligation | $ 6,100 |
Allocation of Purchase Consider
Allocation of Purchase Consideration Including Contingent Acquisition Consideration Payable (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Jan. 29, 2015 | Dec. 31, 2014 |
Business Acquisition [Line Items] | |||
Goodwill | $ 197,039 | $ 54,258 | |
Prosensa Holding N.V | |||
Business Acquisition [Line Items] | |||
Cash and cash equivalents | $ 141,669 | ||
Trade accounts receivable | 3,086 | ||
Other current assets | 1,537 | ||
Property, plant and equipment | 2,683 | ||
Intangible assets | 497 | ||
Other assets | 104 | ||
Acquired IPR&D | 772,808 | ||
Total identifiable assets acquired | 922,384 | ||
Accounts payable and accrued expenses | (68,799) | ||
Debt assumed | (57,053) | ||
Deferred tax liability | (193,202) | ||
Total liabilities assumed | (319,054) | ||
Net identifiable assets acquired | 603,330 | ||
Goodwill | 148,134 | ||
Net assets acquired | $ 751,464 |
Summary of Estimated Fair Value
Summary of Estimated Fair Values of Assets Acquired and Liabilities Assumed (Detail) - USD ($) $ in Thousands | Mar. 10, 2014 | Dec. 31, 2015 |
Land Improvements | ||
Business Acquisition [Line Items] | ||
Estimated useful lives | 10 years | |
San Rafael Corporate Center | ||
Business Acquisition [Line Items] | ||
Building and improvements | $ 94,414 | |
Land | 14,565 | |
Land improvements | 3,616 | |
Intangible assets | 3,905 | |
Net identifiable assets acquired | $ 116,500 | |
Estimated useful lives | Remaining lease terms | |
San Rafael Corporate Center | Building and Improvements | ||
Business Acquisition [Line Items] | ||
Estimated useful lives | 50 years | |
San Rafael Corporate Center | Land Improvements | ||
Business Acquisition [Line Items] | ||
Estimated useful lives | 10 years |
Fair Value of Identifiable Leas
Fair Value of Identifiable Lease Intangible assets Acquired by Asset Class (Detail) - San Rafael Corporate Center $ in Thousands | Mar. 10, 2014USD ($) |
Business Acquisition [Line Items] | |
Fair value of identifiable lease intangible assets | $ 3,905 |
Above Market Leases | |
Business Acquisition [Line Items] | |
Fair value of identifiable lease intangible assets | 351 |
In Place Leases | |
Business Acquisition [Line Items] | |
Fair value of identifiable lease intangible assets | $ 3,554 |
Goodwill - Schedule of Change61
Goodwill - Schedule of Changes in Goodwill (Detail) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015USD ($) | ||
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Balance at December 31, 2014 | $ 54,258 | |
Addition of goodwill related to the acquisition of Prosensa | 148,134 | |
Reduction of goodwill related to the sale of talazoparib | (5,353) | [1] |
Balance at December 31, 2015 | $ 197,039 | |
[1] | See Note 8 to these Consolidated Financial Statements for additional discussion related to the sale of talazoparib. |
Goodwill - Additional Informati
Goodwill - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill impairment | $ 0 |
Amortized Cost Gross Unrealized
Amortized Cost Gross Unrealized Holding Gain or Loss and Fair Value of Available for Sale Security by Major Security Type (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 622,207 | $ 167,830 |
Gross Unrealized Holding Gains | 100 | 74 |
Gross Unrealized Holding Losses | (1,076) | (342) |
Aggregate Fair Value | 621,231 | 167,562 |
Certificates of Deposit | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 63,919 | 72,302 |
Gross Unrealized Holding Gains | 1 | 1 |
Aggregate Fair Value | 63,920 | 72,303 |
Corporate Debt Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 358,625 | 95,478 |
Gross Unrealized Holding Gains | 20 | |
Gross Unrealized Holding Losses | (732) | (342) |
Aggregate Fair Value | 357,913 | 95,136 |
Commercial Paper | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 12,733 | |
Aggregate Fair Value | 12,733 | |
U.S. Government Agency Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 186,882 | |
Gross Unrealized Holding Losses | (344) | |
Aggregate Fair Value | 186,538 | |
Greek Government-Issued Bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 48 | 50 |
Gross Unrealized Holding Gains | 79 | 73 |
Aggregate Fair Value | $ 127 | $ 123 |
Investments - Additional Inform
Investments - Additional Information (Detail) $ in Millions | 12 Months Ended | |
Dec. 31, 2015USD ($)Investment | Dec. 31, 2014USD ($) | |
Investments Debt And Equity Securities [Abstract] | ||
Number of investments in marketable equity securities | Investment | 2 | |
Fair value of marketable equity securities | $ 18.1 | $ 30.8 |
Marketable equity securities, unrealized gain (loss) | 12.7 | $ 18.3 |
Other- than- temporary impairment | $ 1.2 |
Fair Values of Available-For-Sa
Fair Values of Available-For-Sale Securities by Contractual Maturity (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Investments Debt And Equity Securities [Abstract] | ||
Maturing in one year or less | $ 195,579 | $ 69,706 |
Maturing after one year through five years | 425,652 | 97,856 |
Total | $ 621,231 | $ 167,562 |
Intangible Assets (Detail)
Intangible Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Intangible assets: | ||
Finite-lived intangible assets | $ 129,572 | $ 123,365 |
Indefinite-lived intangible assets | 607,548 | 74,430 |
Gross intangible assets: | 737,120 | 197,795 |
Less: Accumulated amortization | (53,124) | (41,217) |
Net carrying value | $ 683,996 | $ 156,578 |
Schedule of Net-Book-Value and
Schedule of Net-Book-Value and Estimated Remaining Life of Finite-Lived Intangible Assets (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Finite-Lived Intangible Assets [Line Items] | |
Net Balance at December 31, 2015 | $ 76,448 |
Repurchased royalty rights | |
Finite-Lived Intangible Assets [Line Items] | |
Net Balance at December 31, 2015 | $ 53,438 |
Remaining Life (in years) | 7 years 10 months 24 days |
Acquired intellectual property | |
Finite-Lived Intangible Assets [Line Items] | |
Net Balance at December 31, 2015 | $ 19,652 |
Remaining Life (in years) | 8 years 7 months 6 days |
License payments for marketing approvals | |
Finite-Lived Intangible Assets [Line Items] | |
Net Balance at December 31, 2015 | $ 2,380 |
Remaining Life (in years) | 5 years 8 months 12 days |
SRCC in-place and above market tenant leases | |
Finite-Lived Intangible Assets [Line Items] | |
Net Balance at December 31, 2015 | $ 978 |
Remaining Life (in years) | Remaining lease terms |
Schedule of Future Amortization
Schedule of Future Amortization Expense of Finite-Lived Intangible Assets (Detail) $ in Thousands | Dec. 31, 2015USD ($) |
Goodwill And Intangible Assets Disclosure [Abstract] | |
2,016 | $ 11,371 |
2,017 | 10,904 |
2,018 | 10,874 |
2,019 | 10,605 |
2,020 | 8,188 |
Thereafter | 24,506 |
Finite-lived intangible assets, net | $ 76,448 |
Schedule of Indefinite Lived In
Schedule of Indefinite Lived Intangible Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Indefinite-lived Intangible Assets [Line Items] | ||
Net carrying value | $ 607,548 | $ 74,430 |
Talazoparib | ||
Indefinite-lived Intangible Assets [Line Items] | ||
In-process research and development acquired | 35,150 | |
Kyndrisa | ||
Indefinite-lived Intangible Assets [Line Items] | ||
In-process research and development acquired | 533,064 | |
Other Exons | ||
Indefinite-lived Intangible Assets [Line Items] | ||
In-process research and development acquired | 41,044 | |
Reveglucosidase Alfa | ||
Indefinite-lived Intangible Assets [Line Items] | ||
In-process research and development acquired | 25,010 | 25,010 |
Other Acquired Pre-Clinical Compounds | ||
Indefinite-lived Intangible Assets [Line Items] | ||
In-process research and development acquired | $ 8,430 | $ 14,270 |
Intangible Assets - Additional
Intangible Assets - Additional Information (Detail) - USD ($) | Oct. 06, 2015 | Dec. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Goodwill And Intangible Assets [Line Items] | |||||
Net gain on sale of intangible assets | $ 369,498,000 | $ 67,500,000 | |||
Impairment charge | $ 0 | $ 198,700,000 | $ 939,000 | ||
Talazoparib | |||||
Goodwill And Intangible Assets [Line Items] | |||||
Net gain on sale of intangible assets | 369,500,000 | ||||
Kyndrisa | Kyndrisa IPR&D | |||||
Goodwill And Intangible Assets [Line Items] | |||||
Impairment charge | $ 198,700,000 | ||||
Medivation | |||||
Goodwill And Intangible Assets [Line Items] | |||||
Upfront payment received | $ 410,000,000 | ||||
Milestone payments | $ 160,000,000 |
Property Plant and Equipment (D
Property Plant and Equipment (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 982,810 | $ 752,405 |
Less: Accumulated depreciation | (278,603) | (228,889) |
Total property, plant and equipment, net | 704,207 | 523,516 |
Building and Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 442,100 | 335,991 |
Manufacturing and Laboratory Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 145,313 | 124,564 |
Computer Hardware and Software | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 113,442 | 97,032 |
Leasehold Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 44,247 | 39,297 |
Furniture and Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 22,817 | 13,717 |
Land Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 4,881 | 4,106 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 45,727 | 29,358 |
Construction-in-Progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 164,283 | $ 108,340 |
Property Plant and Equipment -
Property Plant and Equipment - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Property Plant And Equipment [Abstract] | |||
Depreciation expense | $ 50,100 | $ 44,300 | $ 36,500 |
Depreciation capitalized into inventory | $ 14,627 | $ 10,952 | $ 11,016 |
Schedule of Inventory (Detail)
Schedule of Inventory (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 46,115 | $ 22,488 |
Work-in-process | 150,289 | 114,393 |
Finished goods | 75,279 | 62,571 |
Total inventory | $ 271,683 | $ 199,452 |
Schedule of Other Current Asset
Schedule of Other Current Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | ||
Prepaid expenses | $ 27,957 | $ 35,390 |
Short-term forward currency exchange contract assets | 10,478 | 10,513 |
Promissory notes receivable, net | 46,946 | |
Restricted investments | 7,348 | 2,354 |
Convertible promissory note conversion option | 2,386 | |
Other receivables | 14,150 | 9,733 |
Other | 445 | 1,202 |
Total other current assets | $ 60,378 | $ 108,524 |
Schedule of Other Assets (Detai
Schedule of Other Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | ||
Deposit for business acquisition | $ 371,756 | |
Deposits | 8,606 | $ 12,021 |
Strategic investments | 18,056 | 30,811 |
Long-term forward foreign currency exchange contract assets | 3,533 | 5,387 |
Other | 6,693 | 6,338 |
Total other assets | $ 408,644 | $ 54,557 |
Schedule of Accounts Payable an
Schedule of Accounts Payable and Accrued Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | ||
Accounts payable and accrued operating expenses | $ 179,294 | $ 139,513 |
Accrued income taxes | 59,572 | |
Accrued compensation expense | 78,424 | 45,479 |
Accrued vacation expense | 16,921 | 12,540 |
Accrued rebates payable | 32,553 | 14,859 |
Accrued royalties payable | 10,412 | 9,050 |
Value added taxes payable | 6,377 | 5,479 |
Other | 8,958 | 4,924 |
Total accounts payable and accrued liabilities | $ 392,511 | $ 231,844 |
Schedule of Estimated Accrued R
Schedule of Estimated Accrued Rebates Reserve for Cash Discounts and Allowance for Doubtful Accounts (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accrued Rebates | |||
Supplemental Balance Sheet Information [Line Items] | |||
Balance at Beginning of Period | $ 14,859 | $ 10,429 | $ 9,625 |
Provision for Current Period Sales | 45,356 | 24,431 | 18,872 |
Provision/(Reversals) for Prior Period Sales | (1,245) | (1,159) | (1,169) |
Actual Charges Related to Current Period Sales | (18,421) | (12,768) | (12,025) |
Actual Charges Related to Prior Period Sales | (7,996) | (6,074) | (4,874) |
Balance at End of Period | 32,553 | 14,859 | 10,429 |
Reserve for Cash Discount | |||
Supplemental Balance Sheet Information [Line Items] | |||
Balance at Beginning of Period | 688 | 388 | 372 |
Provision for Current Period Sales | 7,402 | 6,435 | 4,549 |
Actual Charges Related to Current Period Sales | (6,722) | (5,747) | (4,191) |
Actual Charges Related to Prior Period Sales | (537) | (388) | (342) |
Balance at End of Period | 831 | 688 | 388 |
Sales Return Reserve | |||
Supplemental Balance Sheet Information [Line Items] | |||
Balance at Beginning of Period | 907 | ||
Provision for Current Period Sales | 40 | 907 | |
Provision/(Reversals) for Prior Period Sales | (907) | ||
Balance at End of Period | 40 | 907 | |
Allowance for Doubtful Accounts | |||
Supplemental Balance Sheet Information [Line Items] | |||
Balance at Beginning of Period | 490 | 529 | 348 |
Provision for Current Period Sales | 410 | 138 | |
Provision/(Reversals) for Prior Period Sales | (397) | (319) | 43 |
Actual Charges Related to Prior Period Sales | (130) | ||
Balance at End of Period | $ 93 | $ 490 | $ 529 |
Derivative Instruments and He78
Derivative Instruments and Hedging Strategies - Additional Information (Detail) $ in Thousands | 12 Months Ended | |||||||
Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2015EUR (€)Derivative | Dec. 31, 2015CADDerivative | Dec. 31, 2015GBP (£)Derivative | Feb. 13, 2015EUR (€)Derivative | Feb. 13, 2015COPDerivative | |
Derivative [Line Items] | ||||||||
Amount reclassified from accumulated other comprehensive income to earnings as related to forecasted revenue transactions | $ | $ 19,604 | $ 643 | $ 49 | |||||
Gain (Loss) from foreign currency exchange contracts in accumulated other comprehensive income | $ | $ 13,600 | $ 15,900 | $ (2,400) | |||||
Minimum | ||||||||
Derivative [Line Items] | ||||||||
Maturity period of foreign currency derivatives | Jan. 31, 2016 | |||||||
Maximum | ||||||||
Derivative [Line Items] | ||||||||
Maturity period of foreign currency derivatives | Nov. 30, 2018 | |||||||
Foreign Currency Derivatives | ||||||||
Derivative [Line Items] | ||||||||
Amount reclassified from accumulated other comprehensive income to earnings as related to forecasted revenue transactions | $ | $ 13,100 | |||||||
Maximum length of time over which hedging its exposure to the reduction in value of forecasted foreign currency cash flows through foreign currency forward contracts | 12 months | |||||||
Foreign Currency Derivatives | Maximum | ||||||||
Derivative [Line Items] | ||||||||
Maturity period of foreign currency derivatives | Nov. 30, 2018 | |||||||
Derivatives Designated As Hedging Instruments | Euro | ||||||||
Derivative [Line Items] | ||||||||
Number of forward foreign currency exchange contracts outstanding | 221 | 221 | 221 | |||||
Derivatives Designated As Hedging Instruments | Sale Contracts | ||||||||
Derivative [Line Items] | ||||||||
Number of forward foreign currency exchange contracts outstanding | 24 | 24 | 24 | |||||
Derivatives Designated As Hedging Instruments | Purchase | Euro | ||||||||
Derivative [Line Items] | ||||||||
Number of forward foreign currency exchange contracts outstanding | 150 | 150 | ||||||
Derivatives Designated As Hedging Instruments | Purchase | Sale Contracts | ||||||||
Derivative [Line Items] | ||||||||
Number of forward foreign currency exchange contracts outstanding | 12 | 12 | ||||||
Derivatives Designated As Hedging Instruments | Foreign Currency Derivatives | Sale Contracts | ||||||||
Derivative [Line Items] | ||||||||
Outstanding forward foreign currency exchange contracts | € 309,000,000 | CAD 12,500,000 | ||||||
Derivatives Designated As Hedging Instruments | Foreign Currency Derivatives | Purchase | Sale Contracts | ||||||||
Derivative [Line Items] | ||||||||
Outstanding forward foreign currency exchange contracts | € 143,100,000 | COP 39,200,000,000 | ||||||
Not Designated as Hedging Instrument | ||||||||
Derivative [Line Items] | ||||||||
Maturity period of foreign currency derivatives | Jan. 31, 2016 | |||||||
Not Designated as Hedging Instrument | Sale Contracts | ||||||||
Derivative [Line Items] | ||||||||
Number of forward foreign currency exchange contracts outstanding | 1 | 1 | 1 | |||||
Not Designated as Hedging Instrument | Foreign Currency Derivatives | Sale Contracts | ||||||||
Derivative [Line Items] | ||||||||
Outstanding forward foreign currency exchange contracts | € 40,100,000 | £ 3,900,000 |
Derivative Instruments and He79
Derivative Instruments and Hedging Strategies (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Derivative [Line Items] | ||
Derivative Asset, Fair Value | $ 14,011 | $ 15,900 |
Derivative Liability, Fair Value | 5,065 | 12 |
Derivatives Designated As Hedging Instruments | ||
Derivative [Line Items] | ||
Derivative Asset, Fair Value | 14,011 | 15,593 |
Derivative Liability, Fair Value | 5,043 | |
Derivatives Designated As Hedging Instruments | Forward Foreign Currency Exchange Contracts | Other Current Assets | ||
Derivative [Line Items] | ||
Derivative Asset, Fair Value | 10,478 | 10,206 |
Derivatives Designated As Hedging Instruments | Forward Foreign Currency Exchange Contracts | Other Assets | ||
Derivative [Line Items] | ||
Derivative Asset, Fair Value | 3,533 | 5,387 |
Derivatives Designated As Hedging Instruments | Forward Foreign Currency Exchange Contracts | Accounts Payable and Accrued Liabilities | ||
Derivative [Line Items] | ||
Derivative Liability, Fair Value | 1,986 | |
Derivatives Designated As Hedging Instruments | Forward Foreign Currency Exchange Contracts | Other Long-Term Liabilities | ||
Derivative [Line Items] | ||
Derivative Liability, Fair Value | 3,057 | |
Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative Asset, Fair Value | 307 | |
Derivative Liability, Fair Value | 22 | 12 |
Not Designated as Hedging Instrument | Forward Foreign Currency Exchange Contracts | Other Current Assets | ||
Derivative [Line Items] | ||
Derivative Asset, Fair Value | 307 | |
Not Designated as Hedging Instrument | Forward Foreign Currency Exchange Contracts | Accounts Payable and Accrued Liabilities | ||
Derivative [Line Items] | ||
Derivative Liability, Fair Value | $ 22 | $ 12 |
Effect of Derivative Instrument
Effect of Derivative Instruments (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net gain (loss) recognized in Other Comprehensive Income (OCI) | $ 13,600 | $ 15,900 | $ (2,400) | |
Forward Foreign Currency Exchange Contracts | Derivatives Designated As Hedging Instruments | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net gain (loss) recognized in Other Comprehensive Income (OCI) | [1] | 17,300 | 18,078 | (1,366) |
Net gain (loss) reclassified from accumulated OCI into income | [2] | 19,604 | 643 | 49 |
Net gain (loss) recognized in net loss | [3] | (727) | (294) | 310 |
Forward Foreign Currency Exchange Contracts | Not Designated as Hedging Instrument | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net gain (loss) recognized in net loss | [4] | $ 4,493 | $ 8,010 | $ (2,041) |
[1] | Net change in the fair value of the effective portion classified as OCI. | |||
[2] | Effective portion classified as net product revenues. | |||
[3] | Ineffective portion and amount excluded from effectiveness testing classified as SG&A expense | |||
[4] | (1) Classified as selling, general and administrative expense. |
Fair Value of Financial Assets
Fair Value of Financial Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of Available-for-sale securities | $ 621,231 | $ 167,562 | |
Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of Cash and cash equivalents | 397,040 | 875,486 | |
Fair value of Available-for-sale securities | 621,231 | 167,562 | |
Fair value of other current assets | 18,266 | 15,767 | |
Fair value of other non-current assets | 27,951 | 41,310 | |
Fair value of financial assets, Total | 1,064,488 | 1,100,125 | |
Fair value of other current liabilities | 56,545 | 6,211 | |
Fair value of other non-current liabilities | 66,423 | 62,332 | |
Fair value of financial liabilities, Total | 122,968 | 68,543 | |
Fair Value, Measurements, Recurring | Overnight Deposits | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of Cash and cash equivalents | 290,731 | 225,159 | |
Fair Value, Measurements, Recurring | Money Market Instruments | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of Cash and cash equivalents | 106,309 | 650,327 | |
Fair Value, Measurements, Recurring | Nonqualified Deferred Compensation Plan Liability | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of other current liabilities | 1,591 | 2,304 | |
Fair value of other non-current liabilities | 30,703 | 23,565 | |
Fair Value, Measurements, Recurring | Forward Foreign Currency Exchange Contract, Liability | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of other current liabilities | [1] | 2,008 | 12 |
Fair value of other non-current liabilities | [1] | 3,057 | |
Fair Value, Measurements, Recurring | Contingent Acquisition Consideration Payable | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of other current liabilities | 52,946 | 3,895 | |
Fair value of other non-current liabilities | 32,663 | 38,767 | |
Fair Value, Measurements, Recurring | Quoted Price In Active Markets For Identical Assets (Level 1) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of Cash and cash equivalents | 290,731 | 225,159 | |
Fair value of other non-current assets | 18,056 | 30,811 | |
Fair value of financial assets, Total | 308,787 | 255,970 | |
Fair value of other current liabilities | 1,151 | 1,790 | |
Fair value of other non-current liabilities | 24,341 | 18,453 | |
Fair value of financial liabilities, Total | 25,492 | 20,243 | |
Fair Value, Measurements, Recurring | Quoted Price In Active Markets For Identical Assets (Level 1) | Overnight Deposits | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of Cash and cash equivalents | 290,731 | 225,159 | |
Fair Value, Measurements, Recurring | Quoted Price In Active Markets For Identical Assets (Level 1) | Nonqualified Deferred Compensation Plan Liability | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of other current liabilities | 1,151 | 1,790 | |
Fair value of other non-current liabilities | 24,341 | 18,453 | |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of Cash and cash equivalents | 106,309 | 650,327 | |
Fair value of Available-for-sale securities | 621,231 | 167,562 | |
Fair value of other current assets | 18,266 | 13,381 | |
Fair value of other non-current assets | 9,895 | 10,499 | |
Fair value of financial assets, Total | 755,701 | 841,769 | |
Fair value of other current liabilities | 2,448 | 526 | |
Fair value of other non-current liabilities | 9,419 | 5,112 | |
Fair value of financial liabilities, Total | 11,867 | 5,638 | |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Money Market Instruments | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of Cash and cash equivalents | 106,309 | 650,327 | |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Nonqualified Deferred Compensation Plan Liability | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of other current liabilities | 440 | 514 | |
Fair value of other non-current liabilities | 6,362 | 5,112 | |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Forward Foreign Currency Exchange Contract, Liability | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of other current liabilities | [1] | 2,008 | 12 |
Fair value of other non-current liabilities | [1] | 3,057 | |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of other current assets | 2,386 | ||
Fair value of financial assets, Total | 2,386 | ||
Fair value of other current liabilities | 52,946 | 3,895 | |
Fair value of other non-current liabilities | 32,663 | 38,767 | |
Fair value of financial liabilities, Total | 85,609 | 42,662 | |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Contingent Acquisition Consideration Payable | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of other current liabilities | 52,946 | 3,895 | |
Fair value of other non-current liabilities | 32,663 | 38,767 | |
Fair Value, Measurements, Recurring | Certificates of Deposit | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of Available-for-sale securities, current | 56,951 | 54,174 | |
Fair value of Available-for-sale securities, non-current | 6,969 | 18,129 | |
Fair Value, Measurements, Recurring | Certificates of Deposit | Significant Other Observable Inputs (Level 2) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of Available-for-sale securities, current | 56,951 | 54,174 | |
Fair value of Available-for-sale securities, non-current | 6,969 | 18,129 | |
Fair Value, Measurements, Recurring | Corporate Debt Securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of Available-for-sale securities, current | 42,673 | 15,532 | |
Fair value of Available-for-sale securities, non-current | 315,240 | 79,604 | |
Fair Value, Measurements, Recurring | Corporate Debt Securities | Significant Other Observable Inputs (Level 2) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of Available-for-sale securities, current | 42,673 | 15,532 | |
Fair value of Available-for-sale securities, non-current | 315,240 | 79,604 | |
Fair Value, Measurements, Recurring | Commercial Paper | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of Available-for-sale securities, current | 12,733 | ||
Fair Value, Measurements, Recurring | Commercial Paper | Significant Other Observable Inputs (Level 2) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of Available-for-sale securities, current | 12,733 | ||
Fair Value, Measurements, Recurring | U.S. Government Agency Securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of Available-for-sale securities, current | 83,222 | ||
Fair value of Available-for-sale securities, non-current | 103,316 | ||
Fair Value, Measurements, Recurring | U.S. Government Agency Securities | Significant Other Observable Inputs (Level 2) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of Available-for-sale securities, current | 83,222 | ||
Fair value of Available-for-sale securities, non-current | 103,316 | ||
Fair Value, Measurements, Recurring | Greek Government-Issued Bonds | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of Available-for-sale securities, non-current | 127 | 123 | |
Fair Value, Measurements, Recurring | Greek Government-Issued Bonds | Significant Other Observable Inputs (Level 2) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of Available-for-sale securities, non-current | 127 | 123 | |
Fair Value, Measurements, Recurring | Nonqualified Deferred Compensation Plan Assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of other current assets | 440 | 514 | |
Fair value of other non-current assets | 6,362 | 5,112 | |
Fair Value, Measurements, Recurring | Nonqualified Deferred Compensation Plan Assets | Significant Other Observable Inputs (Level 2) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of other current assets | 440 | 514 | |
Fair value of other non-current assets | 6,362 | 5,112 | |
Fair Value, Measurements, Recurring | Forward Foreign Current Exchange Contract Assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of other current assets | [1] | 10,478 | 10,513 |
Fair value of other non-current assets | [1] | 3,533 | |
Fair Value, Measurements, Recurring | Forward Foreign Current Exchange Contract Assets | Significant Other Observable Inputs (Level 2) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of other current assets | [1] | 10,478 | 10,513 |
Fair value of other non-current assets | [1] | 3,533 | |
Fair Value, Measurements, Recurring | Restrictive Investments | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of other current assets | [2] | 7,348 | 2,354 |
Fair value of other non-current assets | [2] | 5,387 | |
Fair Value, Measurements, Recurring | Restrictive Investments | Significant Other Observable Inputs (Level 2) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of other current assets | [2] | 7,348 | 2,354 |
Fair value of other non-current assets | [2] | 5,387 | |
Fair Value, Measurements, Recurring | Strategic Investment | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of other non-current assets | [3] | 18,056 | 30,811 |
Fair Value, Measurements, Recurring | Strategic Investment | Quoted Price In Active Markets For Identical Assets (Level 1) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of other non-current assets | [3] | $ 18,056 | 30,811 |
Fair Value, Measurements, Recurring | Embedded Derivative | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of other current assets | [4] | 2,386 | |
Fair Value, Measurements, Recurring | Embedded Derivative | Significant Unobservable Inputs (Level 3) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of other current assets | [4] | $ 2,386 | |
[1] | See Note 12 to these Consolidated Financial Statements for further information regarding the derivative instruments. | ||
[2] | The restricted investments at December 31, 2015 and 2014 secure the Company’s irrevocable standby letter of credit obtained in connection with certain commercial agreements. | ||
[3] | The Company has investments in marketable equity securities measured using quoted prices in an active market that are considered strategic investments. See Note 7 to these Consolidated Financial Statements for additional discussion regarding the Company’s strategic investments. | ||
[4] | The embedded derivative represents the fair value of the conversion feature of a promissory note which may be settled in the issuer’s underlying shares. |
Liabilities Measured at Fair Va
Liabilities Measured at Fair Value Using Level 3 Inputs (Detail) - Contingent Payment $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Contingent acquisition consideration payable, Beginning balance | $ 42,662 |
Addition of contingent consideration payable related to the Prosensa acquisition | 71,402 |
Reversal of contingent liability related to no early FDA approval for Kyndrisa | (39,726) |
Changes in the fair value of other acquisition contingent consideration payable | 11,271 |
Contingent acquisition consideration payable, Ending balance | $ 85,609 |
Asset Retirement Obligation Lia
Asset Retirement Obligation Liability and Corresponding Capital Asset (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset retirement obligation, Beginning balance | $ 3,765 |
Accretion expense | 148 |
Additions | 820 |
Settlements | (29) |
Asset retirement obligations, Ending balance | $ 4,704 |
Convertible Debt - Additional I
Convertible Debt - Additional Information (Detail) $ / shares in Units, $ in Thousands | Oct. 15, 2013USD ($) | Oct. 31, 2013USD ($) | Apr. 30, 2007USD ($)$ / shares | Dec. 31, 2015USD ($)sharesInvestmentd$ / Option | Dec. 31, 2014USD ($)Agreementshares | Dec. 31, 2013USD ($)Investment | Feb. 13, 2015USD ($)$ / shares |
Debt Conversion [Line Items] | |||||||
Payment for capped calls transactions | $ 29,813 | ||||||
Convertible cash premium paid to holder for agreeing to convert | $ 163 | $ 674 | 12,965 | ||||
Debt instrument, convertible, interest expense | 28,404 | 27,082 | 5,482 | ||||
Convertible Senior Notes | |||||||
Debt Conversion [Line Items] | |||||||
Amortization expense | $ 3,294 | $ 3,332 | $ 1,053 | ||||
Convertible Notes due 2018 and due 2020 | |||||||
Debt Conversion [Line Items] | |||||||
Debt instrument, aggregate principal amount | $ 750,000 | ||||||
Repurchase of note principal amount | 100.00% | ||||||
Notes converted, number of shares | Investment | 7,965,975 | ||||||
Conversion rate of shares | shares | 10.6213 | ||||||
Principal amount on conversion rate | $ 1 | ||||||
Debt instrument, convertible, conversion price, per share | $ / shares | $ 94.15 | ||||||
Consecutive common stock trading days | 30 days | ||||||
Debt instrument convertible threshold percentage | 130.00% | ||||||
Number of business day period | 5 days | ||||||
Trading price percentage on reported sale price of common stock | 98.00% | ||||||
Carrying value of equity component | $ 156,200 | ||||||
Debt issuance costs | $ 23,800 | ||||||
Effective interest rate on liability component | 7.30% | 7.30% | 7.50% | ||||
Common stock shares covered under capped call transactions | shares | 3,982,988 | ||||||
Strike price | $ / Option | 94.15 | ||||||
Cap price | $ / Option | 121.05 | ||||||
Payment for capped calls transactions | $ 29,800 | ||||||
Convertible Notes due 2018 and due 2020 | Minimum | |||||||
Debt Conversion [Line Items] | |||||||
Common stock trading day | d | 20 | ||||||
Convertible Notes due 2018 and due 2020 | Convertible Senior Notes | |||||||
Debt Conversion [Line Items] | |||||||
Net proceeds from offering debt | 726,200 | ||||||
Debt Instrument, unamortized discount | $ 161,300 | ||||||
Offering costs | 5,100 | ||||||
Convertible Notes due 2018 | |||||||
Debt Conversion [Line Items] | |||||||
Debt instrument, aggregate principal amount | $ 375,000 | ||||||
Debt instrument, interest rate, stated percentage, per annum | 0.75% | ||||||
Debt Instrument, unamortized discount | 41,904 | $ 55,537 | |||||
Carrying value of equity component | 374,980 | 375,000 | |||||
Offering costs | 5,415 | 7,335 | |||||
Convertible Notes due 2020 | |||||||
Debt Conversion [Line Items] | |||||||
Debt instrument, aggregate principal amount | $ 375,000 | ||||||
Debt instrument, interest rate, stated percentage, per annum | 1.50% | ||||||
Debt Instrument, unamortized discount | 65,478 | 77,045 | |||||
Carrying value of equity component | 374,993 | 375,000 | |||||
Offering costs | $ 6,210 | 7,493 | |||||
Convertible Notes due 2017 | |||||||
Debt Conversion [Line Items] | |||||||
Debt instrument, interest rate, stated percentage, per annum | 1.875% | ||||||
Notes converted, number of shares | shares | 399,469 | ||||||
Debt instrument, convertible, conversion price, per share | $ / shares | $ 20.36 | ||||||
Carrying value of equity component | $ 31,430 | 40,558 | |||||
Offering costs | 110 | 246 | |||||
Debt instrument, aggregate principal amount | $ 324,900 | ||||||
Convertible debt | 31,400 | ||||||
Maturity date of convertible debt | Apr. 23, 2017 | ||||||
Payments of debt issuance costs | $ 8,500 | ||||||
Amortization expense | 100 | $ 100 | $ 400 | ||||
Convertible notes aggregate principal | 8,100 | ||||||
Convertible cash premium paid to holder for agreeing to convert | $ 200 | ||||||
Number of agreements | Agreement | 2 | ||||||
Convertible Notes due 2017 | Agreement One | |||||||
Debt Conversion [Line Items] | |||||||
Notes converted, number of shares | 809,351 | 12,906,780 | |||||
Convertible notes aggregate principal | $ 16,500 | $ 262,800 | |||||
Convertible cash premium paid to holder for agreeing to convert | 700 | 14,800 | |||||
Debt instrument, convertible, interest expense | 1,800 | ||||||
Reclassified of deferred offering costs to additional paid-in capital | 2,800 | ||||||
Convertible Notes due 2017 | Convertible Senior Notes | Agreement One | |||||||
Debt Conversion [Line Items] | |||||||
Convertible cash premium paid to holder for agreeing to convert | $ 700 | $ 13,000 |
Summary of Additional Interest
Summary of Additional Interest Expense Recognized (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule Of Interest Expenses [Line Items] | |||
Total | $ 28,404 | $ 27,082 | $ 5,482 |
Convertible Notes due 2018 | |||
Schedule Of Interest Expenses [Line Items] | |||
Amortization of issuance costs | 1,921 | 1,910 | 397 |
Accretion of debt discount | 13,633 | 12,963 | 2,620 |
Convertible Notes due 2020 | |||
Schedule Of Interest Expenses [Line Items] | |||
Amortization of issuance costs | 1,283 | 1,279 | 264 |
Accretion of debt discount | $ 11,567 | $ 10,930 | $ 2,201 |
Summary of Convertible Debt (De
Summary of Convertible Debt (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | |||
Long-term Convertible Notes, net of unamortized discount and deferred offering costs | $ 662,286 | $ 642,902 | |
Convertible Notes, fair value | 1,147,301 | 1,079,792 | |
Convertible Notes due 2020 | |||
Debt Instrument [Line Items] | |||
Long-term Convertible Notes | 374,993 | 375,000 | |
Long-term convertible debt, unamortized discount | (65,478) | (77,045) | |
Long-term convertible debt, Unamortized deferred offering costs | (6,210) | (7,493) | |
Long-term Convertible Notes, net of unamortized discount and deferred offering costs | 303,305 | 290,462 | |
Convertible Notes, fair value | [1] | 502,701 | 456,360 |
Convertible Notes due 2018 | |||
Debt Instrument [Line Items] | |||
Long-term Convertible Notes | 374,980 | 375,000 | |
Long-term convertible debt, unamortized discount | (41,904) | (55,537) | |
Long-term convertible debt, Unamortized deferred offering costs | (5,415) | (7,335) | |
Long-term Convertible Notes, net of unamortized discount and deferred offering costs | 327,661 | 312,128 | |
Convertible Notes, fair value | [1] | 482,584 | 442,448 |
Convertible Notes due 2017 | |||
Debt Instrument [Line Items] | |||
Long-term Convertible Notes | 31,430 | 40,558 | |
Long-term convertible debt, Unamortized deferred offering costs | (110) | (246) | |
Long-term Convertible Notes, net of unamortized discount and deferred offering costs | 31,320 | 40,312 | |
Convertible Notes, fair value | [1] | $ 162,016 | $ 180,984 |
[1] | The fair value of the Company’s fixed rate convertible debt is based on open market trades and is classified as Level 1 in the fair value hierarchy. |
Summary of Interest Expense on
Summary of Interest Expense on Convertible Debt (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule Of Interest Expenses [Line Items] | |||
Total interest expense on convertible debt | $ 38,244 | $ 36,642 | $ 10,447 |
Convertible Senior Notes | |||
Schedule Of Interest Expenses [Line Items] | |||
Coupon interest | 9,750 | 9,417 | 4,550 |
Amortization of issuance costs | 3,294 | 3,332 | 1,053 |
Accretion of debt discount | 25,200 | 23,893 | 4,821 |
Total interest expense on convertible debt | $ 38,244 | $ 36,642 | $ 10,424 |
Anti-Dilutive Common Stock Excl
Anti-Dilutive Common Stock Excluded From Computation of Diluted Net Loss Per Share (Detail) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Potential shares of common stock excluded from computation of earnings (loss) per share as they are anti-dilutive | 21,999 | 23,098 | 25,719 |
Stock Option | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Potential shares of common stock excluded from computation of earnings (loss) per share as they are anti-dilutive | 10,323 | 11,477 | 13,157 |
Common stock issuable under the 2017 Notes | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Potential shares of common stock excluded from computation of earnings (loss) per share as they are anti-dilutive | 1,544 | 1,992 | 3,047 |
Common stock issuable under the 2018 and 2020 Notes | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Potential shares of common stock excluded from computation of earnings (loss) per share as they are anti-dilutive | 7,966 | 7,966 | 7,966 |
Unvested restricted stock units | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Potential shares of common stock excluded from computation of earnings (loss) per share as they are anti-dilutive | 1,743 | 1,244 | 1,159 |
Potentially issuable common stock for ESPP purchases | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Potential shares of common stock excluded from computation of earnings (loss) per share as they are anti-dilutive | 180 | 195 | 197 |
Common stock held by the NQDC | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Potential shares of common stock excluded from computation of earnings (loss) per share as they are anti-dilutive | 243 | 224 | 193 |
Net Loss Per Common Share - Add
Net Loss Per Common Share - Additional Information (Detail) | Dec. 31, 2015$ / shares |
The Notes | |
Earnings Per Share [Line Items] | |
Debt instrument, convertible, conversion price, per share | $ 94.15 |
Provision for Benefit from Inco
Provision for Benefit from Income Taxes Based Income Loss Before Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
U.S. Source | $ 182,215 | $ 49,411 | $ 46,675 |
Non-U.S. Source | (336,939) | (174,279) | (223,178) |
Loss before income taxes | $ (154,724) | $ (124,868) | $ (176,503) |
Components of Provision for Ben
Components of Provision for Benefit from Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Federal | $ 84,743 | $ 28,093 | $ 5,060 |
State and local | 5,323 | 3,011 | 1,496 |
Foreign | 3,836 | 3,614 | 2,199 |
Current income tax expense, total | 93,902 | 34,718 | 8,755 |
Federal | (17,741) | (20,367) | (6,084) |
State and local | (8,770) | (4,982) | (2,658) |
Foreign | (50,316) | (268) | (163) |
Deferred income tax expense (benefit), total | (76,827) | (25,617) | (8,905) |
Provision for (benefit from) income taxes | $ 17,075 | $ 9,101 | $ (150) |
Reconciliation of Statutory Fed
Reconciliation of Statutory Federal Income Tax Rate to Company Effective Income Tax Rate (Detail) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Federal statutory income tax rate | 35.00% | 35.00% | 35.00% |
State and local taxes | (2.20%) | (1.60%) | (0.30%) |
Orphan Drug & General Business Credit | 34.80% | 29.30% | 14.70% |
Stock compensation expense | (2.80%) | (2.40%) | (1.70%) |
Changes in the fair value of contingent acquisition consideration payable | 0.20% | (3.60%) | (2.90%) |
Subpart F income | (8.40%) | (9.20%) | |
Foreign tax rate differential | (46.20%) | (51.50%) | (45.40%) |
Other | (2.90%) | (3.60%) | 1.60% |
Valuation allowance/Deferred benefit | (18.50%) | 0.30% | (0.90%) |
Effective income tax rate | (11.00%) | (7.30%) | 0.10% |
Components of Company Net Defer
Components of Company Net Deferred Tax Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Income Tax Disclosure [Abstract] | ||
Net operating loss carryforwards | $ 44,942 | $ 16,208 |
Tax credit carryforwards | 143,987 | 171,840 |
Accrued expenses, reserves, and prepaids | 79,029 | 30,626 |
Intangible assets | 16,177 | 14,550 |
Stock-based compensation | 49,322 | 34,133 |
Inventory | 18,942 | 14,108 |
Impairment and capital loss carryforwards | 5,005 | 1,997 |
Other | 1,155 | 928 |
Valuation allowance | (67,708) | (7,812) |
Total deferred tax assets | 290,851 | 276,578 |
Joint venture basis difference | (1,888) | (1,781) |
Acquired intangibles | (162,689) | (33,049) |
Convertible notes discount | (32,162) | (39,317) |
Property, plant and equipment | (13,192) | (4,932) |
Unrealized gains | (4,256) | (6,525) |
Total deferred tax liabilities | (214,187) | (85,604) |
Net deferred tax assets | $ 76,664 | $ 190,974 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Contingency [Line Items] | |||
Net operating loss carryforwards | $ 44,942 | $ 16,208 | |
Unrecognized tax benefit | 86,731 | 71,663 | $ 50,815 |
Valuation allowance increase (decrease) | 59,900 | $ 500 | |
Unrecognized tax benefits that would affect the effective tax rate if recognized | 86,700 | ||
Undistributed earnings of foreign subsidiaries | 1,700 | ||
Deferred income taxes that have not been provided on foreign earnings | $ 200 | ||
Minimum | |||
Income Tax Contingency [Line Items] | |||
Income Tax Statute Of Limitations Period | 3 years | ||
Maximum | |||
Income Tax Contingency [Line Items] | |||
Income Tax Statute Of Limitations Period | 5 years | ||
Federal | |||
Income Tax Contingency [Line Items] | |||
Net operating loss carryforwards | $ 22,300 | ||
Research credit carry forward | $ 299,700 | ||
Federal | Minimum | |||
Income Tax Contingency [Line Items] | |||
Operating loss carry forward if not utilized, expiration date | 2,027 | ||
Research credit carryovers if not utilized, expiration date | 2,021 | ||
Federal | Maximum | |||
Income Tax Contingency [Line Items] | |||
Operating loss carry forward if not utilized, expiration date | 2,033 | ||
Research credit carryovers if not utilized, expiration date | 2,035 | ||
State | |||
Income Tax Contingency [Line Items] | |||
Net operating loss carryforwards | $ 184,100 | ||
Research credit carry forward | $ 61,000 | ||
State | Minimum | |||
Income Tax Contingency [Line Items] | |||
Operating loss carry forward if not utilized, expiration date | 2,016 | ||
Research credit carryovers if not utilized, expiration date | 2,019 | ||
State | Maximum | |||
Income Tax Contingency [Line Items] | |||
Operating loss carry forward if not utilized, expiration date | 2,035 | ||
Foreign | Dutch | |||
Income Tax Contingency [Line Items] | |||
Net operating loss carryforwards | $ 121,000 | ||
Foreign | Dutch | Minimum | |||
Income Tax Contingency [Line Items] | |||
Operating loss carry forward if not utilized, expiration date | 2,016 | ||
Foreign | Dutch | Maximum | |||
Income Tax Contingency [Line Items] | |||
Operating loss carry forward if not utilized, expiration date | 2,024 | ||
Employee Stock Purchase Plan | Federal | |||
Income Tax Contingency [Line Items] | |||
Unrecognized tax benefit | $ 387,800 | ||
Employee Stock Purchase Plan | State | |||
Income Tax Contingency [Line Items] | |||
Unrecognized tax benefit | $ 79,900 |
Reconciliation of Unrecognized
Reconciliation of Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | ||
Balance at beginning of period | $ 71,663 | $ 50,815 |
Additions based on tax positions related to the current year | 13,614 | 20,303 |
Additions for tax positions of prior years | 1,454 | 545 |
Balance at end of period | $ 86,731 | $ 71,663 |
Equity Compensation Plans - Add
Equity Compensation Plans - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Stockholders Equity [Line Items] | ||
Share based awards, authorized | 30,200,000 | |
Options outstanding | 10,322,903 | 11,477,164 |
Stock options granted | 728,770 | |
Common Stock | ||
Stockholders Equity [Line Items] | ||
Vesting period, years | 3 years | |
Board of Directors Chairman | ||
Stockholders Equity [Line Items] | ||
Outstanding options expiration term, years | 10 years | |
Independent Director | ||
Stockholders Equity [Line Items] | ||
Stock options granted | 10,000 | |
Re-elected Director | ||
Stockholders Equity [Line Items] | ||
Stock options granted | 8,500 | |
Employee Stock Purchase Plan | ||
Stockholders Equity [Line Items] | ||
Percentage of fair market value of the stock purchased | 85.00% | |
Span of offering period, in years | 2 years | |
Maximum percentage of qualified compensation to be used for purchase | 10.00% | |
Maximum payroll deductions | $ 25,000 | |
Shares issued under the Employee Stock Purchase Plan | 185,091 | |
Shares reserved for future issuance | 1,000,000 | |
Unvested restricted stock units | Common Stock | ||
Stockholders Equity [Line Items] | ||
Vesting period, years | 1 year | |
Unvested restricted stock units | Independent Director | ||
Stockholders Equity [Line Items] | ||
Vesting period, years | 3 years | |
Stock options granted | 4,000 | |
Unvested restricted stock units | Re-elected Director | ||
Stockholders Equity [Line Items] | ||
Vesting period, years | 1 year | |
Stock options granted | 3,400 | |
2014 Inducement Plan | Maximum | ||
Stockholders Equity [Line Items] | ||
Share based awards, authorized | 1,700,000 | |
Share Incentive Plan | ||
Stockholders Equity [Line Items] | ||
Share based awards, authorized | 27,700,000 | |
Options outstanding | 10,000,000 | |
Share Incentive Plan | Stock Option | ||
Stockholders Equity [Line Items] | ||
Vesting period, years | 4 years | |
Initial time period vesting requirements, months | 6 months | |
Outstanding options expiration term, years | 10 years | |
Share Incentive Plan | Restricted Stock With Service Based Vesting Conditions | ||
Stockholders Equity [Line Items] | ||
Vesting period, years | 4 years | |
Share Incentive Plan | Restricted Stock With Service Based Vesting Conditions | Board of Directors Chairman | ||
Stockholders Equity [Line Items] | ||
Vesting period, years | 1 year | |
Previous Stock Option Plans | ||
Stockholders Equity [Line Items] | ||
Options outstanding | 300,000 |
Summary of Stock Option Activit
Summary of Stock Option Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | ||
Compensation Related Costs [Abstract] | |||
Shares, Options outstanding as of December 31, 2014 | 11,477,164 | ||
Shares, Granted | 728,770 | ||
Shares, Exercised | (1,723,345) | ||
Shares, Expired and forfeited | (159,686) | ||
Shares, Options outstanding as of December 31, 2015 | 10,322,903 | 11,477,164 | |
Shares, Options expected to vest at December 31, 2015 | 1,563,790 | ||
Shares, Exercisable at December 31, 2015 | 8,102,226 | ||
Weighted Average Exercise Price, Outstanding as of December 31, 2014 | $ 38.11 | ||
Weighted Average Exercise Price, Granted | 116.94 | ||
Weighted Average Exercise Price, Exercised | 30.80 | ||
Weighted Average Exercise Price, Expired and forfeited | 63.79 | ||
Weighted Average Exercise Price, Outstanding as of December 31, 2015 | 44.50 | $ 38.11 | |
Weighted Average Exercise Price, Excepted to Vest at December 31, 2015 | 62.18 | ||
Weighted Average Exercise Price, Exercisable at December 31, 2015 | $ 35.62 | ||
Options outstanding as of December 31, 2014 | 5 years 7 months 6 days | 6 years 2 months 12 days | |
Weighted Average Remaining Years, Exercisable at December 31, 2015 | 4 years 10 months 24 days | ||
Options outstanding as of December 31, 2014 | [1] | $ 600,112 | |
Options outstanding as of December 31, 2015 | [1] | 630,949 | $ 600,112 |
Aggregate Intrinsic Value, Options expected to vest at December 31, 2015 | [1] | 66,579 | |
Aggregate Intrinsic Value, Exercisable at December 31, 2015 | [1] | $ 561,554 | |
[1] | The aggregate intrinsic value for outstanding options is calculated as the difference between the exercise price of the underlying awards and the quoted price of the Company’s common stock as of the last trading day for the respective year. The aggregate intrinsic value of options outstanding and exercisable includes options with an exercise price below $104.76, the closing price of the Company’s common stock on December 31, 2015. |
Summary of Stock Option Activ98
Summary of Stock Option Activity (Parenthetical) (Detail) | Dec. 31, 2015$ / shares |
Compensation Related Costs [Abstract] | |
Closing price of common stock | $ 104.76 |
Stock Based Compensation - Addi
Stock Based Compensation - Additional Information (Detail) $ / shares in Units, $ in Thousands | Mar. 03, 2015shares | Dec. 31, 2015USD ($)$ / sharesshares | Dec. 31, 2014USD ($)$ / sharesshares | Dec. 31, 2013USD ($)$ / shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted-average fair value per option granted | $ / shares | $ 56.76 | $ 30.93 | $ 30.77 | |
Total intrinsic value of options exercised | $ 146,600 | $ 130,100 | $ 119,200 | |
Options in-the-money | shares | 9,700,000 | |||
Recognized compensation costs | $ 111,525 | 86,410 | 64,376 | |
Revenue Multiple | 1.11 | |||
Stock-based compensation capitalized to inventory | 11,100 | 8,200 | 6,100 | |
Stock Option | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Recognized compensation costs | 41,500 | 41,100 | 37,000 | |
Unrecognized compensation cost related to unvested awards | $ 74,200 | |||
Unrecognized compensation cost expected to recognized over weighted average period, in years | 2 years 3 months 18 days | |||
Employee Stock Purchase Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Recognized compensation costs | $ 7,100 | 4,800 | 3,600 | |
Unrecognized compensation cost related to unvested awards | $ 9,800 | |||
Unrecognized compensation cost expected to recognized over weighted average period, in years | 1 year 3 months 18 days | |||
Restricted Stock With Service Based Vesting Conditions | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Recognized compensation costs | $ 47,900 | $ 21,300 | $ 13,000 | |
Unrecognized compensation cost related to unvested awards | $ 143,200 | |||
Unrecognized compensation cost expected to recognized over weighted average period, in years | 2 years 9 months 18 days | |||
Weighted-average grant date fair value per share of restricted stock units, Grants in period | $ / shares | $ 119.86 | $ 64.37 | $ 66.81 | |
The total fair value of restricted stock vested and released | $ 59,500 | $ 22,900 | $ 19,700 | |
Granted restricted stock units | shares | 2,147,209 | 1,540,703 | ||
Restricted Stock With Performance and Market Based Vesting Conditions | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Recognized compensation costs | $ 5,800 | $ 12,900 | $ 6,500 | |
Unrecognized compensation cost related to unvested awards | $ 300 | |||
Unrecognized compensation cost expected to recognized over weighted average period, in years | 2 months 12 days | |||
Granted restricted stock units | shares | 860,000 | 860,000 | ||
Total shareholder return, percentage of multiplier range | 124.00% | |||
TSR calculation period, days | 20 days | |||
Restricted Stock With Performance and Market Based Vesting Conditions | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total shareholder return, percentage of multiplier range | 75.00% | |||
Restricted Stock With Performance and Market Based Vesting Conditions | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total shareholder return, percentage of multiplier range | 125.00% | |||
Restricted Stock Unit Awards with Performance Conditions | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Recognized compensation costs | $ 1,800 | |||
Unrecognized compensation cost related to unvested awards | $ 5,000 | |||
Unrecognized compensation cost expected to recognized over weighted average period, in years | 2 years 2 months 12 days | |||
Weighted-average grant date fair value per share of restricted stock units, Grants in period | $ / shares | $ 108.36 | |||
Granted restricted stock units | shares | 58,300 | |||
Award vesting service period | 3 years | |||
Number of units that could vest if performance condition is achieved and a revenue multiplier is applied | shares | 64,713 | |||
Restricted Stock Unit Awards with Performance Conditions | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Revenue multiplier | 0.80 | |||
Restricted Stock Unit Awards with Performance Conditions | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Revenue multiplier | 1.20 |
Assumptions Used to Estimate Pe
Assumptions Used to Estimate Per Share Fair Value of Stock Options Granted (Detail) - Stock Option | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Dividend yield | 0.00% | 0.00% | 0.00% |
Expected life | 6 years 10 months 24 days | ||
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 36.00% | 44.00% | 44.00% |
Expected life | 6 years 4 months 24 days | 6 years 7 months 6 days | |
Risk-free interest rate | 1.50% | 1.80% | 1.00% |
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 45.00% | 45.00% | 47.00% |
Expected life | 8 years | 6 years 9 months 18 days | |
Risk-free interest rate | 2.20% | 2.30% | 2.40% |
Assumptions Used to Estimate101
Assumptions Used to Estimate Per Share Fair Value of Stock Purchase Rights Granted (Detail) - Employee Stock Purchase Plan | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 37.00% | ||
Dividend yield | 0.00% | 0.00% | 0.00% |
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 36.00% | 38.00% | |
Expected life | 6 months | 6 months | 6 months |
Risk-free interest rate | 0.10% | 0.10% | 0.10% |
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 38.00% | 39.00% | |
Expected life | 24 months | 24 months | 24 months |
Risk-free interest rate | 0.80% | 0.50% | 0.30% |
Summary of Non-Vested Restricte
Summary of Non-Vested Restricted Stock Unit Activity (Detail) - Restricted Stock With Service Based Vesting Conditions - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule of Share based Compensation Arrangements by Share based Payment Award, Equity Instruments, Other Than Options, Restricted Stock Units [Line Items] | |||
Shares, Non-vested units as of December 31, 2014 | 1,540,703 | ||
Shares, Granted | 1,234,650 | ||
Shares, Vested | (489,301) | ||
Shares, Forfeited | (138,843) | ||
Shares, Non-vested units as of December 31, 2015 | 2,147,209 | 1,540,703 | |
Shares, Non-vested units expected to vest at December 31, 2015 | 1,895,918 | ||
Weighted Average Grant Date Fair Value, Non-vested units as of December 31, 2014 | $ 59.46 | ||
Weighted Average Grant Date Fair Value, Granted | 119.86 | $ 64.37 | $ 66.81 |
Weighted Average Grant Date Fair Value, Vested | 54.48 | ||
Weighted Average Grant Date Fair Value, Forfeited | 81.67 | ||
Weighted Average Grant Date Fair Value, Non-vested units as of December 31, 2015 | 93.89 | $ 59.46 | |
Weighted Average Grant Date Fair Value, Non-vested units expected to vest at December 31, 2015 | $ 92.56 | ||
Weighted Average Remaining Years, Non-vested units as of December 31, 2014 | 2 years 9 months 18 days | 2 years 10 months 24 days | |
Aggregate Intrinsic Value, Non-vested units as of December 31, 2014 | $ 139,280 | ||
Aggregate Intrinsic Value, Non-vested units as of December 31, 2015 | 224,942 | $ 139,280 | |
Aggregate Intrinsic Value, Non-vested units expected to vest at December 31, 2015 | $ 199,917 |
Non Vested Base Restricted Stoc
Non Vested Base Restricted Stock Unit Activity Under Plans (Detail) - Restricted Stock With Performance and Market Based Vesting Conditions - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares, Non-vested units as of December 31, 2014 | 860,000 | |
Shares, Non-vested units as of December 31, 2015 | 860,000 | 860,000 |
Weighted Average Grant Date Fair Value, Non-vested units as of December 31, 2014 | $ 34.66 | |
Weighted Average Grant Date Fair Value, Non-vested units as of December 31, 2015 | $ 34.66 | $ 34.66 |
Weighted Average Remaining Years, Non-vested units as of December 31, 2014 | 2 months 12 days | 1 year 2 months 12 days |
Aggregate Intrinsic Value, Non-vested units as of December 31, 2014 | $ 77,744 | |
Aggregate Intrinsic Value, Non-vested units as of December 31, 2015 | $ 90,094 | $ 77,744 |
Multiple Performance Conditions
Multiple Performance Conditions for Vesting Of Base RSUs (Detail) - Restricted Stock With Performance and Market Based Vesting Conditions - shares | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stock units, outstanding | 860,000 | 860,000 |
Restricted stock units, earned | 799,800 | |
Product Goals | Approval of Vimizim In US or EU | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Percentage of Base RSUs to Vest Upon Achievement of Goal | 35.00% | |
Base Number of RSUs Granted Before TSR Multiplier | 301,000 | |
Performance Goal Attained | Yes | |
Number of RSUs Earned After TSR Multiplier | 373,240 | |
Product Goals | Approval of pegvaliase (Peg Pal) or Any Other Non Vimizim Product In US Or EU | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Percentage of Base RSUs to Vest Upon Achievement of Goal | 25.00% | |
Base Number of RSUs Granted Before TSR Multiplier | 215,000 | |
Performance Goal Attained | No | |
Financial Goal | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Percentage of Base RSUs to Vest Upon Achievement of Goal | 40.00% | |
Base Number of RSUs Granted Before TSR Multiplier | 344,000 | |
Performance Goal Attained | Yes | |
Number of RSUs Earned After TSR Multiplier | 426,560 |
Multiple Performance Conditi105
Multiple Performance Conditions for Vesting Of Base RSUs (Parenthetical) (Detail) - Restricted Stock With Performance and Market Based Vesting Conditions $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Financial Goal | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total revenues expected, period | 2,015 |
Total revenues expected | $ 775 |
Approval of Vimizim In US or EU | Product Goals | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Approval of product in the U.S. or EU, date | Dec. 31, 2015 |
Approval of pegvaliase (Peg Pal) or Any Other Non Vimizim Product In US Or EU | Product Goals | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Approval of product in the U.S. or EU, date | Dec. 31, 2015 |
Compensation Expense (Detail)
Compensation Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation expense | $ 111,525 | $ 86,410 | $ 64,376 |
Cost of Sales | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation expense | 6,836 | 6,076 | 4,860 |
Research and Development | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation expense | 49,399 | 33,835 | 27,763 |
Selling, General and Administrative | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation expense | $ 55,290 | $ 46,499 | $ 31,753 |
Amounts Reclassified out of Acc
Amounts Reclassified out of Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||
Net product revenues | $ 884,522 | $ 738,416 | $ 538,360 |
Selling, general and administrative | 402,271 | 302,156 | 235,356 |
Other income (expense) | (9,299) | 279 | 982 |
Provision for (benefit from) income taxes | 17,075 | 9,101 | (150) |
NET LOSS | (171,799) | (133,969) | $ (176,353) |
Amount Reclassified from AOCI Gain (Loss) | Other-than-temporary impairment on available-for-sale securities | |||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||
Other income (expense) | (1,160) | ||
Amount Reclassified from AOCI Gain (Loss) | Gain on sale of available-for-sale investment | |||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||
Other income (expense) | 3,033 | ||
Amount Reclassified from AOCI Gain (Loss) | Gain (loss) on cash flow hedges: | Forward Foreign Currency Exchange Contracts | |||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||
Net product revenues | 17,715 | 1,008 | |
Selling, general and administrative | 1,889 | ||
Provision for (benefit from) income taxes | 681 | 365 | |
NET LOSS | $ 20,796 | $ 643 |
Summary of Changes in Accumulat
Summary of Changes in Accumulated Balances of Other Comprehensive Income Loss Including Current Period Other Comprehensive Income and Reclassifications (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accumulated Other Comprehensive Income Loss [Line Items] | |||
AOCI balance at December 31, 2014 | $ 27,466 | $ 5,018 | |
Other comprehensive income (loss) before reclassifications | 14,363 | 23,091 | |
Less gain (loss) reclassified from AOCI | 20,796 | 643 | |
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX | (6,433) | 22,448 | $ 5,220 |
AOCI balance at December 31, 2015 | 21,033 | 27,466 | 5,018 |
Gain (loss) on cash flow hedges: | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
AOCI balance at December 31, 2014 | 15,906 | (1,529) | |
Other comprehensive income (loss) before reclassifications | 17,300 | 18,078 | |
Less gain (loss) reclassified from AOCI | 19,604 | 643 | |
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX | (2,304) | 17,435 | |
AOCI balance at December 31, 2015 | 13,602 | 15,906 | (1,529) |
Unrealized Gains on Available-for-Sale Securities | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
AOCI balance at December 31, 2014 | 11,511 | 6,423 | |
Other comprehensive income (loss) before reclassifications | (2,878) | 5,088 | |
Less gain (loss) reclassified from AOCI | 1,192 | ||
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX | (4,070) | 5,088 | |
AOCI balance at December 31, 2015 | 7,441 | 11,511 | 6,423 |
Foreign Currency Items | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
AOCI balance at December 31, 2014 | 49 | 124 | |
Other comprehensive income (loss) before reclassifications | (59) | (75) | |
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX | (59) | (75) | |
AOCI balance at December 31, 2015 | $ (10) | $ 49 | $ 124 |
Consolidated Net Product Revenu
Consolidated Net Product Revenue Concentrations Based on Patient Location (Detail) - Net Product Revenue | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Geographic Concentration Risk | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 89.00% | 86.00% | 85.00% |
Geographic Concentration Risk | United States | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 39.00% | 37.00% | 36.00% |
Geographic Concentration Risk | Europe | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 20.00% | 20.00% | 22.00% |
Geographic Concentration Risk | Latin America | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 16.00% | 16.00% | 14.00% |
Geographic Concentration Risk | Rest of World | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 14.00% | 13.00% | 13.00% |
Customer Concentration Risk | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 49.00% | 52.00% | 51.00% |
Customer Concentration Risk | Genzyme | Product Four | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 11.00% | 14.00% | 15.00% |
Credit Concentration Risk | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 100.00% | 100.00% | 100.00% |
Consolidated Net Product Rev110
Consolidated Net Product Revenue Concentrations Attributed to Largest Customers (Detail) - Customer Concentration Risk - Net Product Revenue | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 49.00% | 52.00% | 51.00% | |
Customer A | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 15.00% | 15.00% | 15.00% | |
Customer B | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | [1] | 11.00% | 14.00% | 16.00% |
Customer C | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 10.00% | 12.00% | 9.00% | |
Customer D | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 13.00% | 11.00% | 11.00% | |
[1] | Genzyme is the Company’s sole customer for Aldurazyme and is responsible for marketing and selling Aldurazyme to third-parties. Net product revenues from Genzyme consists of royalties on worldwide net Aldurazyme sales and incremental product transfer revenue. |
Revenue and Credit Concentra111
Revenue and Credit Concentrations - Additional Information (Detail) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015USD ($)Customer | Dec. 31, 2014USD ($)Customer | Dec. 31, 2013 | |
Concentration Risk [Line Items] | |||
Accounts receivable, net | $ 164,959 | $ 144,472 | |
Southern European Countries | |||
Concentration Risk [Line Items] | |||
Total amount past due | 14,500 | ||
Southern European Countries | Greater than 90 days | |||
Concentration Risk [Line Items] | |||
Total amount past due | $ 500 | ||
Largest Customers | |||
Concentration Risk [Line Items] | |||
Number of customers accounted for largest balance in accounts receivable | Customer | 2 | 2 | |
Accounts receivable, net | $ 36,100 | $ 34,500 | |
Credit Concentration Risk | Accounts Receivable | Larger Customer One | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 37.00% | 42.00% | |
Credit Concentration Risk | Accounts Receivable | Larger Customer Two | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 18.00% | 18.00% | |
Credit Concentration Risk | Net Product Revenue | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 100.00% | 100.00% | 100.00% |
Geographic Concentration Risk | Accounts Receivable | Southern European Countries | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 9.00% | ||
Geographic Concentration Risk | Net Product Revenue | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 89.00% | 86.00% | 85.00% |
Geographic Concentration Risk | Net Product Revenue | Southern European Countries | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 5.00% |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2015Segment | |
Segment Reporting [Abstract] | |
Number of operating business segment | 1 |
Segment Information by Product
Segment Information by Product Revenue (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenue from External Customer [Line Items] | |||
Net product revenues | $ 884,522 | $ 738,416 | $ 538,360 |
Vimizim | |||
Revenue from External Customer [Line Items] | |||
Net product revenues | 228,147 | 77,319 | 85 |
Naglazyme | |||
Revenue from External Customer [Line Items] | |||
Net product revenues | 303,090 | 334,447 | 271,244 |
Kuvan | |||
Revenue from External Customer [Line Items] | |||
Net product revenues | 239,336 | 202,987 | 167,422 |
Aldurazyme | |||
Revenue from External Customer [Line Items] | |||
Net product revenues | 97,912 | 105,616 | 83,545 |
Firdapse | |||
Revenue from External Customer [Line Items] | |||
Net product revenues | $ 16,037 | $ 18,047 | $ 16,064 |
Summary of Total Revenues from
Summary of Total Revenues from External Customers and Collaborative Partners by Geographic Region (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenue from External Customer [Line Items] | |||
Total revenues | $ 889,895 | $ 749,284 | $ 548,485 |
United States | |||
Revenue from External Customer [Line Items] | |||
Total revenues | 444,075 | 378,288 | 284,303 |
Europe | |||
Revenue from External Customer [Line Items] | |||
Total revenues | 178,746 | 139,940 | 115,729 |
Latin America | |||
Revenue from External Customer [Line Items] | |||
Total revenues | 142,305 | 118,562 | 67,339 |
Rest of World | |||
Revenue from External Customer [Line Items] | |||
Total revenues | $ 124,769 | $ 112,494 | $ 81,114 |
Summary of Non-Monetary Long-Li
Summary of Non-Monetary Long-Lived Assets by Geographic Region (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Revenue from External Customer [Line Items] | ||
Total long-lived assets | $ 1,807,998 | $ 931,965 |
United States | ||
Revenue from External Customer [Line Items] | ||
Total long-lived assets | 940,512 | 827,884 |
Europe | ||
Revenue from External Customer [Line Items] | ||
Total long-lived assets | 865,233 | 102,451 |
Rest of World | ||
Revenue from External Customer [Line Items] | ||
Total long-lived assets | $ 2,253 | $ 1,630 |
Collaborative Agreements - Addi
Collaborative Agreements - Additional Information (Detail) - USD ($) $ in Thousands, shares in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2012 | Oct. 31, 2012 | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||
Accounts receivable | $ 200 | $ 200 | ||
Termination of collaborative agreement prior to written notice in number of days | 90 days | |||
Licensing arrangement, convertible promissory note received | $ 3,326 | 52,288 | ||
Royalties on net product sales | 7.00% | |||
Royalties on net product sales | 10.00% | |||
Catalyst Pharmaceutical Partners, Inc. | ||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||
Accounts receivable | $ 100 | $ 100 | ||
Licensing arrangement, convertible promissory note received | $ 5,000 | |||
Licensing arrangement, shares received upon conversion promissory note | 6.7 |
Compensation Agreements and 117
Compensation Agreements and Plans - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Compensation And Retirement Disclosure [Line Items] | |||
Loss in fair value of restricted stock issued | $ 2,500,000 | $ 4,800,000 | $ 4,200,000 |
BioMarin Retirement Savings Plan | |||
Compensation And Retirement Disclosure [Line Items] | |||
Employee contribution of their current compensation | 100.00% | ||
Company's contribution to match employees contribution | 100.00% | ||
Employer contribution of maximum percentage over employee's annual compensation | 3.00% | ||
Employer contribution over employee's annual compensation | $ 6,000 | ||
Company's savings plan contribution vesting period, years | 4 years | ||
Company's contribution from employment commencement | $ 15,100,000 | 8,300,000 | $ 3,400,000 |
Deferred Compensation Plan | |||
Compensation And Retirement Disclosure [Line Items] | |||
Fair value of company stock held | $ 25,500,000 | $ 20,200,000 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Commitments and Contingencies [Line Items] | |||
Lease expiration date | 2,025 | ||
Rent expense | $ 9,300 | $ 7,900 | $ 10,400 |
Deferred rent accruals | 1,700 | 1,300 | |
Deferred rent accruals, current | 1,200 | 700 | |
Purchase commitment for the next five years | 51,000 | ||
Contingent payments upon achievement of certain regulatory and licensing milestones | 675,400 | ||
Contingent consideration payable | 85,600 | ||
Short-term contingent acquisition consideration payable | 52,946 | $ 3,895 | |
Prosensa Holding N.V | |||
Commitments and Contingencies [Line Items] | |||
Contingent payments upon achievement of certain regulatory and licensing milestones | 80,000 | ||
Completed Programs | |||
Commitments and Contingencies [Line Items] | |||
Contingent payments upon achievement of certain regulatory and licensing milestones | $ 22,700 |
Minimum Lease Payments for Futu
Minimum Lease Payments for Future Years (Detail) $ in Thousands | Dec. 31, 2015USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
2,016 | $ 7,209 |
2,017 | 6,527 |
2,018 | 5,444 |
2,019 | 2,990 |
2,020 | 2,352 |
Thereafter | 9,953 |
Total | $ 34,475 |
Subsequent Event - Additional I
Subsequent Event - Additional Information (Detail) - Subsequent Event - Merck Serono € in Millions, $ in Millions | Jan. 02, 2016USD ($) | Jan. 01, 2016EUR (€) |
Subsequent Event [Line Items] | ||
Upfront Payment | $ | $ 371.8 | |
Maximum potential additional consideration milestone payments | € | € 185 |